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THURSDAY, MAY 20, 2021 www.theedgemarkets.com ISSUE 187/2021 CEOMorningBrief

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PUBLIC MUTUAL BERHAD (197501001842 (23419-A)) COVID-19 CASES JUMP TO ALL-TIME HIGH OF 6,075; NATIONWIDE DEATH TOLL BREACHES 2,000 p2

THURSDAY, MAY 20, 2021 www.theedgemarkets.com ISSUE 187/2021 CEOMorningBrief HOME: state govt was conned on vaccine donation, says Khairy p4 Malaysia’s April vehicle sales down 9.34% from March as chip shortage impacts some brands p5 WORLD: Bitcoin plunge exceeds 25%, wipes US$500 billion from market value p16

PATRICK GOH/THE EDGE

Covid-19: initiates own vaccine programme as only 3% of state population vaccinated so far Report on Page 3. THURSDAY MAY 20, 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, , to contact editors: [email protected] [email protected] Selangor, Malaysia to advertise: [email protected]

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namely (323), (220), Covid-19 cases (203), (189), Penang (183), Senior citizen (160), (150) and Melaka (122). jump to all-time Among the smaller States and Federal Ter- bookings for ritories, recorded 14 cases, followed high of 6,075; by with nine cases. , which is a AstraZeneaca yellow-zone State, recorded six cases. nationwide death Daily recoveries, on the other hand, came in shot to open at 3,516 cases, raising cumulative recoveries to toll breaches 2,000 436,116, representing a recovery rate of 89.8%. from Sunday Active cases now stand at 47,340, which marks the eight consecutive day that the figure BY EMIR ZAINUL & SULHI KHALID has stayed above the 40,000 mark after breach- BY ARJUNA CHANDRAN SHANKAR theedgemarkets.com ing that level last Wednesday. theedgemarkets.com The Ministry also reported that 559 cases (May 19): Malaysia hit are being treated in intensive care units, with KUALA LUMPUR (May 19): Book- another daily high of 6,075 new Covid-19 cas- 303 patients on ventilators. ings for senior citizens for the Astra- es today — up from 4,865 yesterday — push- Zeneca Covid-19 vaccine will start from ing cumulative positive cases in the country to 22 new infection clusters found — May 23 (Sunday). 485,496, according to Health Ministry direc- highest in a day In a tweet, the Ministry of Health tor-general Tan Sri Dr The Ministry has also identified 22 new Cov- (MoH) said this will be on a “first-come, in a statement today. id-19 clusters in the past 24 hours — the highest first-serve” basis with limited slots. The The previous record high number of daily reported in a single day. bookings are open to senior citizens in cases was 5,728, recorded on Jan 30 this year. Eight of them were workplaces clusters, sev- , Pinang, Kuala Lumpur, Sarawak Also reported today were 46 Covid-19 fatali- en were community clusters, while six were and Selangor. ties, one below the peak of 47 cases seen yesterday, clusters related to places of worship and one The bookings can be done at which pushed the nationwide death toll from the was related to an educational institution. https://www.vaksincovid.gov.my/. coronavirus past the 2,000 mark, to 2,040. Of “It is hoped that everyone is cognisant of the However, the announcement did not the latest fatalities, 19 were in Selangor, seven in current situation that has befallen our country disclose the time at which people can Sarawak, six in Johor, four in , two each and can work closely together so that we can go start making bookings for the Astra- in Sabah, Kuala Lumpur, Penang and , through this difficult moment in fighting Cov- Zeneca Covid-19 vaccine. and one each in Negeri Sembilan and Melaka. id-19 as a united nation,” Dr Noor Hisham said. The MoH said those who are aged Selangor continued to record the highest 60 and above and have already regis- number of Covid-19 infections with 2,251, fol- tered under the National Immunisation lowed by Johor (699), Kuala Lumpur (660), Read also: 94% increase in total Covid-19 Programme (NIP) can book their ap- Kedah (445) and Kelantan (441). Most oth- ICU admissions in Klang Valley — Health pointments under this round. er States also recorded three-digit new cases, DG Click here The MoH also said applicants should ensure that their identification numbers Malaysia’s coronavirus curve climbs again amid third infection wave and addresses listed in MySejahtera are correct. In addition, they should also 8000 Daily new cases 7-day moving average make sure that they are informed about 7000 the AstraZeneca vaccine before making any bookings. 6000 6,075 5000 An MoH spokesperson told theedge- 4,611 markets.com later today that the time 4000 at which people can start making book- 3000 ings for the vaccine will be announced 2000 tomorrow. 1000 0 Sept 1, 2020 May 19, 2021 Read also: Study shows AstraZeneca vaccine works well as third booster — report Click here THURSDAY MAY 20, 2021 3 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 19): Only about maceutical Regulatory Agency (NPRA) — 3% of the population in Selangor has been Covid-19: Pfizer-BioNTech, AstraZeneca or Sinovac. vaccinated against Covid-19, and this is be- Selangor has mandated Selgate Health- hind other states and federal territories in Selangor initiates care Sdn Bhd to handle matters pertaining Malaysia including Kuala Lumpur, Labuan, to acquiring the vaccines. Melaka, Pahang, and Perlis, lamented Selan- own vaccine At the moment, she said the discussions gor Public Health, Unity, Women and Family for the Selgate vaccination programme are Development Committee chairman Dr Siti programme in the final stages and that Selangor Men- Mariah Mahmud. teri Besar Datuk Seri will As such, in order to speed up the inocula- as only 3% of announce the details of the programme early tion process in the state, Siti Mariah said the next week, including the price of the vaccines. Selangor state government had initiated the state population Siti Mariah noted that so far there are Selgate Covid-19 vaccination programme, more than 3,500 companies that have already including opening it up for private compa- vaccinated so far expressed their interest to purchase the vac- nies to buy vaccines to be administered to cines from the state government, covering their workers. over one million employees. “Actually we encourage everyone to regis- BY EMIR ZAINUL She added that the state initially ordered ter through MySejahtera to get the free vac- theedgemarkets.com for 2.5 million doses of the vaccine to inoc- cine, but the industry players have told us ulate 1.25 million of its citizens, but is ready that they cannot wait a long time to get the factories will have to be closed, and every time and willing to purchase more according to vaccine. they close it is a huge loss to them and also to the needs of the people. “We know that the employers are willing the rakyat,” she told a press conference today. The priority, she stressed, remains for to buy the vaccine because they want it fast. However, Siti Mariah did not disclose how high-risk individuals and vulnerable groups, They may be the last to receive [under the and which of the vaccines will be sourced but including the elderly in nursing homes, the national vaccination programme] so if there maintained that it will be either of the three disabled, dialysis centres as well as other mar- [are] any infections [in their premises], the that has been approved by the National Phar- ginalised groups, such as the Orang Asal.

Stricter lockdown in Selangor not the solution to contain Covid-19 pandemic, says Dzulkefly

KUALA LUMPUR (May 19): The Selan- BY EMIR ZAINUL Although the cumulative number of gor state government has taken the stance theedgemarkets.com positive cases in Selangor may seem alarm- to reject a complete lockdown, in which ing, he said it is not as bad when compared most economic activities are not permitted, As such, Dzulkefly instead called for a to the total population of the state. in the state as there are other more effective more targeted and effective lockdown, cou- “If we look at the number of infections ways to contain the spread of Covid-19, pled with mass testing in order to quickly per 100,000 population, Selangor is the according to Selangor Covid-19 taskforce detect positive cases to isolate them, curbing fourth-worst-hit state. The state with the chairman Datuk Seri Dr . the spread of infections. highest rate is Kelantan, followed by Sar- The former health minister contended Dzulkefly was responding to a statement awak and Kuala Lumpur. that the high prevalence of reported spo- by the current health minister Datuk Seri Dr “If we consider the number of fatalities radic cases right now is due to the federal on Monday that the ministry per one million people, we are also number government’s failure to restrict infections is considering imposing a full-scale MCO four, behind Sabah, Kuala Lumpur and within Covid-19 clusters that have spilt in Selangor if Covid-19 cases in the state Sarawak. So, if the health minister wants over to infect communities, causing an continue to rise. to implement [a full lockdown in Selan- outbreak. Selangor has been the state that reported gor], I urge him to reconsider it,” Dzulkefly “Don’t take a lockdown as the easy the highest number of new confirmed Cov- commented. way out because of your failure to man- id-19 cases. The state reported 2,251 new age the previous movement control or- cases today, lifting the cumulative number ders (MCOs),” he said in a press con- to 159,307. Read also: ference today. The daily number of new cases has stayed Dzulkefly explained that most of the above 1,000 consecutively since May 5. 40% of SMEs will shut down if Govt outbreak in communities can be attributed Dzulkefly warned that implementing a imposes full lockdown, says association to failure in policies such as poor diagnos- stricter lockdown in the entire state will Click here tic policy, delayed testing as well as weak negatively impact the state’s economy, es- contact tracing. pecially the informal business community. “Clusters of infections spread into Selangor was noted to contribute roughly CUEPACS wants full MCO for a communities because close contacts are a quarter of the national gross domestic minimum of 21 days Click here left roaming around during the gap time product. between testing and confirmation. Over Furthermore, Dzulkefly argued that the time, this becomes a backlog in the com- incidence of Covid-19 in Selangor is still un- MB denies viral message on munity causing a reservoir of infection der control, and it is not the worst-hit state implementation of full lockdown in that is very worrying,” he said. based on the caseload. Perak Click here THURSDAY MAY 20, 2021 4 THEEDGE CEO MORNING BRIEF

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Penang state govt was conned on vaccine donation, says Khairy

KUALA LUMPUR (May 19): The feder- BY ADAM AZIZ “This is a controlled item — this is not al government has not blocked the alleged theedgemarkets.com like buying T-shirts in Shoppee. This is private offer to donate two million doses of about procurement of vaccines which re- Sinovac vaccine to the Penang state gov- quire NPRA’s (National Pharmaceutical ernment which has since been found to Regulatory Agency) approval and other be a scam, said today. regulatory approvals in order for them to In a virtual press conference today, the be brought into the country.” Coordinating Minister for the Nation- A police report will be lodged in order al Covid-19 Immunisation Programme to identify Yong, with the situation creating (NIP) said that channel checks with Si- much confusion for Penang Chief Minister novac found that no contact had been , Khairy said. made as alleged by the supposed donor, Meanwhile, checks showed that there Hong Kong-based Xintai Development is an eight-year-old company registered Enterprise Ltd. in Hong Kong named Xintai Enterprise A company search also found that Xin- Development Ltd — whose name is very tai Development Enterprise did not exist similar to the non-existent Xintai Develop- as it was not registered in Hong Kong, the ment Enterprise Ltd where Yong suppos- minister said. edly serves as general manager, and from Khairy was responding to an allegation which the letter claiming the company will that claimed the federal government had make a US$2 million deposit to Sinovac blocked the offer to the Penang state gov- to procure the vaccines came from. ernment, which it received via a letter on Yesterday, Khairy said Putrajaya would Feb 1 from one Yong Chee Kong with an allow state governments to procure vac- address in . cines on their own under several condi- “The offer is bogus. It is completely tions, including that the vaccines must have untrue. We checked with Sinovac and obtained NPRA’s approval. they have no dealings with the compa- “As stated, federal government book- ny. We checked with company records ings must be prioritised. I support any offer in Hong Kong, and the company does from state governments, but for those inter- not exist. No one even knows who Yong “If the Penang state government can ested, they must be aware that the vaccines Chee Kong is.” prove that this donation from Yong Chee will be provided after supply for the federal Interestingly, Khairy said his ministry also Kong is legitimate, I will give the approval government is satisfied under the NIP for received a similar letter from Yong on Feb 9 [for the donation] immediately for them to free vaccination to the public,” he added. for a similar donation offer — two million bring in these vaccine [doses],” said Khairy. NPRA currently has approved vaccines doses of Sinovac vaccine — but to the Sabah “I welcome anyone who wishes to as- from Sinovac, AstraZeneca-Oxford Universi- state government. He added that the offers sist the government by providing vaccine ty, and Pfizer-BioNTech, which have cleared were made when the government had yet supplies, but it must go through the proper the minimum efficacy rate of 50% as recom- to approve the Sinovac vaccine. channels. mended by the World Health Organization.

Penang urges private company to explain its free vaccine offer after Khairy’s exposé

GEORGE TOWN (May 19): The pri- contribution could not be considered as vate company which offers two million the Federal government had implement- doses of Sinovac vaccine to the State gov- he said in a statement here today. ed the National COVID-19 Immunisa- ernment earlier should come forward to According to Chow, the State gov- tion Programme but the status of the clear its name and image, said Penang ernment had taken prudent action as company was not touched. Chief Minister Chow Kon Yeow. soon as it received the vaccine offer in “With this, the State government could This followed serious allegations by a letter dated Feb 1 2021 in which the not pursue the matter as it did not receive Science, Technology and Innovation State government sought the view of the MOH’s recommendation letter to enable Minister Khairy Jamaluddin that the Penang Health Department which lat- them negotiate with the vaccine supplier. company is bogus and its offer is a scam. er requested it to be forwarded to the “The State government had carried “The allegation is serious as the name Health Ministry for advice. out its responsibility on this issue as the and director of the company were men- Following that on March 12, he said vaccine offer was made for the people tioned by the Minister and it should MOH secretary-general Datuk Mohd in Penang towards their safety against come forward to deny the allegations,” Shafiq Abdullah replied that the vaccine Covid-19 virus,” he said. THURSDAY MAY 20, 2021 5 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 19): Pen- “Congratulations to the eight VCs for jana Kapital Sdn Bhd, a company set Penjana Kapital successfully raising RM676 million for up by the government to operational- the Malaysian start-up industry. I also ise the Dana Penjana Nasional (DPN) raises RM676m welcome their foreign VC partners to our programme, has raised RM676 million shores, which is clearly a vote of con- in funding for start-ups. in funding for fidence in Malaysia’s growth prospects In a statement, the company said 55% and its start-up industry,” Finance Min- of the funds or RM372 million came start-ups ister Tengku Datuk Seri Zafrul Tengku from various foreign investors, specifi- Abdul Aziz said in the statement. cally from Hong Kong and South Korea. “These funds are crucial to spur our The RM676 million was raised via BY ARJUNA CHANDRAN SHANKAR start-up ecosystem and encourage inno- eight Malaysia-based venture capital theedgemarkets.com vation, particularly in the face of Cov- (VC) fund managers selected as part id-19 challenges. I wish Penjana Kapital, of the DPN programme, Penjana Kapital bility and property sectors. the VCs and their investee companies said, noting that the amount exceeded its All eight start-ups are present in at every success in invigorating this in- initial fundraising goal of RM228 million least two Asean countries. Five of them dustry, as well as facilitating knowl- by RM448 million or 200%. are Malaysia-based start-ups while three edge transfer and creating high-paying The eight VCs will initially invest a of them have committed to operations jobs in Malaysia’s start-up space,” he combined RM110.15 million in eight here and have already secured partner- said. start-ups, including RM5 million as seed ships with Malaysian corporates. The DPN programme is a matching funding for an e-commerce start-up. Apart from committing to a target in- fund-of-funds programme under the Another RM45.15 million will be ternal rate of return of between 15% and Penjana economic stimulus. The gov- used for four start-ups in the Series 30%, the eight VC fund managers have ernment will match RM600 million of A/B stage, which are mainly in the Ag- also committed to delivering tangible eco- the funds raised by VC fund managers riTech, FinTech and HealthTech sec- nomic benefits to the Malaysian economy from foreign and private domestic inves- tors, while RM60 million will be used and creating almost 1,400 high-quality tors, with a target allocation of RM1.2 for three start-ups in the transport, mo- jobs from those initial investments. billion.

Malaysia’s April Monthly vehicle sales in Malaysia vehicle sales 80000 Vehicles sold down 9.34% from 60000

March as chip 40000 shortage impacts some brands 20000

0 48,450 39,810 54,776 49,935 60,760 44,695 50,854 51,148 44,666 53,870 52,584 54,842 42,867 41,088 22,518 152 23,309 42,586 57,552 52,800 56,444 56,670 56,489 68,836 32,829 42,784 63,878 57,912 BY TAN SIEW MUNG theedgemarkets.com April June June

KUALA LUMPUR (May 19): Malaysia’s December December vehicle sales fell 9.34% to 57,912 units in 2019 2020 2021 April, from 63,878 units in March, as the Source: The Malaysian Automotive Association (MAA) shortage of computer chips impacted the sales of some makes. Monthly sales were also dragged by the sential sectors — were halted during the be lower than in April, due to the re-im- enforcement of Conditional Movement first Movement Control Order (MCO) plementation of the MCO or MCO 3.0. Control Order in Selangor, Kuala Lum- that was implemented from mid-March While all economic sectors are allowed to pur, Johor, Penang, Kelantan and Sarawak, to April 2020. continue operating under this latest MCO, according to the Malaysian Automotive Year to date, total vehicle sales stood at MAA expects the movement restrictions, Association (MAA) in a statement. 199,556 units, up 89.29% from 105,424 amid the surge in Covid-19 infections, Passenger vehicle sales accounted for registered a year ago. to affect businesses and traffic flows into 52,628 units sold during the month, while Meanwhile, car production in April showrooms. commercial vehicle sales stood at 5,284 soared 187 times to 51,390 units from May’s monthly sales are also expected units. 275 units a year earlier. to be affected by the fact that it is a shorter On a year-on-year basis, the number Year to date, total production jumped working month due to the Hari Raya fes- of vehicles sold in the country surged 318 82.56% to 198,476 units, from 108,719 tive holidays, and the persistent shortage times from 152 in April last year, when units a year earlier. of computer chips that will continue to all economic activities — other than es- MAA expects sales volume in May to affect some makes. THURSDAY MAY 20, 2021 6 THEEDGE CEO MORNING BRIEF

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for offenders, resulting in lighter pun- ‘Critical’ for ishments,” it said. The anti-corruption institutions were focused on mid-level Malaysia to corruption rather than grand corruption involving the highest echelon of govern- announces maintain ment leadership, it added. The report also pointed out that the second offshore momentum of lack of institutionalisation of reforms by way of law and regulations has resulted Miri O&G anti-corruption, in the dismantling of some of the reforms discovery previously introduced to limit the role of governance politicians in statutory bodies and gov- of this year ernment-linked companies (GLCs). reforms — Political appointments continued to be made to board and chairman positions, BY IZZUL IKRAM World Bank making it difficult to separate political theedgemarkets.com and business interests, it added. “The new government has formed its KUALA LUMPUR (May 19): Petronas BY ADAM AZIZ Cabinet and has signalled that it is com- Nasional Bhd (Petronas) announced to- theedgemarkets.com mitted to carrying forward these reforms, day a second oil and gas (O&G) discov- which are still being led by the Cabinet ery in Balingian province about 230km KUALA LUMPUR (May 19): The Ma- Committee on Anti-Corruption, the off the coast of Miri, Sarawak, following laysian experience in combating corrup- Global Infrastructure Anti-Corruption its first discovery on March 30. tion has yielded results, but the key is to Centre (GIACC), and the MACC and In a statement, the state-owned maintain the momentum and continuity others under the framework outlined in O&G firm said the Kulintang-1 ex- of the reforms around anti-corruption the NACP. ploration well in the shallow waters of and governance, the World Bank said. “These plans are not clear yet, but Balingian province was successfully This is as many institutions set up to of critical importance is for Malaysia to drilled to a total depth of 2,238 me- detect and sanction corruption “became review the regulations of all its statutory tres in April 2021. gradually compromised with increasing bodies, develop clear regulatory and over- “The well encountered gas in the concentration of political power” in the sight bodies that will oversee corporate Oligocene to Middle Miocene sand- past despite the nation adopting inter- governance, and drive political govern- stone reservoirs, which has not been national best practices. ance and anti-party hopping laws which fully evaluated before,” it said. The country, which has experienced caused the fall of the federal government Petronas said PTTEP HK Offshore two changes in federal government since and some state governments,” it said. Ltd is the operator for Block SK438 2018, needs to work towards institution- While efforts to take swift action on with 80% participating interest, while alising its reforms, and to have a broader high-profile corruption scandals is on- Petronas Carigali Sdn Bhd holds the coalition of reformers that is not limited going, the report added that further re- remaining 20%. to public institutions and other formal forms such as those involving procure- The block’s production sharing con- institutions of government, it said in its ment, political funding, asset declaration, tract (PSC) was awarded in March report “Enhancing Government Effec- politically-linked board appointments in 2018 following Malaysia Bid Round tiveness and Transparency: The Fight statutory bodies, and effectiveness of the (MBR) 2017. Against Corruption”. oversight of regulatory bodies “need to be Petronas senior vice president of In the report, the World Bank high- taken to their logical conclusion”. Malaysia petroleum management Mo- lighted how the National Anti-Corruption “Reforms carried out in the judiciary, hamed Firouz Asnan said the success Plan (NACP) has singled out political parliament, election commission and the of Kulintang-1 marks the second gas interference as “one of the major imped- public service provide a good foundation discovery within the Balingian province iments” of past reform efforts. for institutionalising the changes,” it said, this year and proves the further potential The interference affected prudence in adding that federal-level reforms “need of gas in the province. administrative and financial management to be cascaded” to state governments and “The Kulingan sweet gas discovery in areas such as public procurement and local authorities. can be monetised through existing infra- resulted in half-hearted implementation Malaysia’s first change in federal gov- structure towards fulfilling the demand of reforms, it said, adding that “strong ernment in 2018 and the ensuing efforts of the domestic gas customers as well support and a clear mandate from the to revitalise anti-corruption institutions as Petronas LNG Complex in Bintulu, top leadership is a pre-requisite to pur- and limit executive powers helped it go Sarawak,” he added. sue difficult reforms”. up 10 places to 51 of 180 countries in According to the statement, Petronas “There was over-centralisation of Transparency International’s (TI) 2019 is offering opportunities in 13 new off- power in the executive, and both the Corruption Perception Index (CPI). shore exploration blocks in Malaysia’s Malaysian Anti-Corruption Commis- For the 2020 ranking, Malaysia prolific basins, including a few blocks sion (MACC) and Attorney-General’s dropped to 57th place, on the back of within Balingian, for the ongoing MBR Chambers lacked the independence to better performance by other countries, 2021. deal with grand corruption cases, such coupled with limited access to informa- MBR 2021 also offers enhanced fis- as the 1MDB and FELDA when they tion on matters of public interest, stalled cal and non-fiscal terms as part of Pe- were initially unearthed. progress in institutional reforms, and a tronas’ continuous efforts to grow its “The MACC Act lacked the teeth to lack of political will to fight institutional partners in Malaysia. accord a mandatory minimum sentence corruption. THURSDAY MAY 20, 2021 7 THEEDGE CEO MORNING BRIEF THURSDAY MAY 20, 2021 8 THEEDGE CEO MORNING BRIEF

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Malakoff 1Q profit down 32% on lower applicable coal price and despatch factor

BY ADAM AZIZ theedgemarkets.com

KUALA LUMPUR (May 19): Malak- off Corp Bhd’s net profit for the first quarter (1Q) ended March 31, 2021 fell 32.22% year-on-year to RM60.44 million from RM89.18 million, on low- Moving forward, the group remains up- er applicable coal price and lower des- Dialog 3Q’s beat that its business model is well struc- patch factor. tured to manage and sustain itself through The lower earnings were also due net profit periods of economic uncertainty, oil price to higher operational and maintenance volatility and currency movements. costs, as well as lower contributions down 9.85% to “Whilst the world is experiencing a from foreign investments in associates, prolonged economic downturn due to the group said in its results filing. RM136.17 mil, the Covid-19 global pandemic which had Quarterly earnings per share fell to caused demand disruptions of petroleum 1.24 sen, from 1.82 sen previously. declares 1.2 sen products, Dialog has maintained a very Malakoff said the lower applicable prudent approach and taken proactive coal price resulted in lower energy pay- dividend steps in managing the group’s finances. ments from its two coal plant units Tan- “Capital expenditure and operating jung Bin Power Sdn Bhd and Tanjung expenses have been reviewed and cost Bin Energy Sdn Bhd, while the lower BY SULHI KHALID reduction measures are ongoing without despatch factor affected its gas plant theedgemarkets.com jeopardizing our operations and service unit Segari Energy Ventures Sdn Bhd. delivery to customers,” it said. Concurrently, group revenue fell KUALA LUMPUR (May 19): Dialog In the midstream sector, the group 23.8% to RM1.35 billion, from RM1.77 Group Bhd saw its net profit for the said it will continue to develop Pengerang billion a year earlier. third quarter ended March 31, 2021 Deepwater Terminals (PDT) for oil, On prospects, Malakoff said it is able (3QFY21) fall 9.85% to RM 136.17 gas and petrochemical players that are to maintain operational efficiency and million from RM151.04 million a year looking to capture Asia Pacific demand reliability, and remains steadfast in its ago due to lower revenue generated by growth over the next 30 years. cost savings and operational optimisa- downstream activities. “PDT continues to offer a compelling tion programmes despite the current Subsequently, its earnings per share de- value proposition for the establishment situation amid the Covid-19 pandemic. clined slightly to 2.41 sen from 2.68 sen. of strategic hub operations given its ide- “The group has recently submitted In a filing exchange today, the group al location and one-stop integrated hub a bid for a waste-to-energy plant in Jo- highlighted its quarterly revenue drop- offering. hor with a capacity of 800 tonnes per ping by 19.84% to RM405.18 million “In the downstream sector, we will day,” it added. from RM505.43 million as the focus on continue to leverage on our strengths Shares of Malakoff fell half a sen or the development of the group’s own inter- and establish a track record in integrat- 0.59% to 84.5 sen, valuing the power nal midstream terminal assets resulted in ed technical services comprising Engi- utility group at RM4.23 billion. lower revenue for Malaysian operations. neering, Procurement, Construction & Despite lower earnings, Dialog de- Commissioning (EPCC), Plant Mainte- clared an interim dividend of 1.2 sen nance & Catalyst Handling Services, and per share to its shareholders, to be paid Specialist Products and Services,” it said. on June 29. As for the upstream sector, the group For the full nine-month period, the is taking proactive steps in the cash flow group’s net profit declined by 14.6% management of its assets together with to RM404.6 million from RM473.69 its respective partners. million while revenue was down Dialog’s share price fell two sen to by 38.3% to RM1.09 billion from RM2.88 today, giving it a market cap- RM1.76 billion. italisation of RM16.26 billion. THURSDAY MAY 20, 2021 9 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 19): Kuala Lum- Its oleochemical division’s profit also pur Kepong Bhd’s latest quarterly net profit KLK 2Q net jumped more than twofold to RM199.2 surged nearly 18 times to RM490.44 million million from RM96.3 million, while its from RM27.89 million in the corresponding profit surges property segment profit quadrupled to quarter last year, thanks to higher commodity RM16.8 million from RM4 million. prices, and stronger earnings from its manu- to RM490m On a quarter-on-quarter (q-o-q) basis, facturing and property segments. the group’s net profit grew 37.22% from Revenue for its second quarter ended on buoyant RM357.41 million in 1QFY21, while rev- March 31, 2021 (2QFY21) grew 18.5% to enue rose 4.9% from RM4.3 billion. RM4.51 billion from RM3.81 billion pre- commodity prices Cumulative net profit for 1HFY21 viously, its stock exchange filing showed. came in at RM847.85 million, over four Earnings per share jumped to 45.5 sen times the RM195.09 million it recorded from 2.6 sen. BY ARJUNA CHANDRAN SHANKAR in 1HFY20 as revenue grew 11.8% to The group declared an interim dividend theedgemarkets.com RM8.81 billion from RM7.88 billion. of 20 sen per share — up from 15 sen in Moving forward, the group expects its 2QFY20 — to be paid on Aug 3. plantations segment profit in FY21 to be KLK said its plantation segment’s profit substantially higher as CPO prices remain jumped 90.8% to RM277.94 million from buoyant, underpinned by tight palm oil in- RM145.7 million on better crude palm ventories and global edible oil supplies. oil (CPO) and palm kernel (PK) prices. “Amidst a difficult operating environ- CPO prices increased 16.5% to RM2,997 ment, the oleochemical division has per- a tonne from RM2,572 a tonne last year, formed well. [But] the coming quarters will while PK prices grew 47% to RM2,259 from be challenging for this division due to zero RM1,537. duty for oleochemical products in Indone- The segment also saw higher contribu- sia. Nevertheless, this division anticipates its tions from its processing and trade oper- profit for FY2021 to be much better than the ations, with a lower foreign exchange (fo- preceding year. Overall, the group’s profit for rex) loss of RM5.7 million versus RM32.8 FY2021 will be significantly higher,” it said. million in 2QFY20, on the translation of KLK shares finished unchanged at US-dollar denominated bank borrowings of RM2.62 billion versus RM1.98 billion RM22.02 apiece today, giving the group in an Indonesian subsidiary. in 2QFY20. a market capitalisation of RM23.8 billion. At the same time, its seg- “Improvement in performance from ment doubled its profit to RM196.9 mil- Malaysia, China and Europe operations lion from RM97.4 million last year on im- had contributed positively to this segment’s Read also: Batu Kawan’s 2Q net profit proved profit margins and higher revenue profit,” it said. sixteen-fold higher Click here

KUALA LUMPUR (May 19): Malaysian tained into the second quarter of this year, Bulk Carriers Bhd (Maybulk) net profit Maybulk’s 1Q on strong demand and temporary disruptive for the first quarter ended March 31, 2021 elements such as port condensations. (FY21) fell 68.51% to RM15 million from bottomline lower Meanwhile, it expects the high Chinese RM47.65 million in the corresponding quar- steel output to come under pressure, as reg- ter last year, when it recorded a one-off gain on absence of ulators may rein in excess capacity and curb on the liquidation of a subsidiary. environmental pollution — which may im- Quarterly earnings per share fell to 1.5 one-off gain, but pact iron ore and coal imports. sen from 4.77 sen, the company’s results “The resurgence of Covid-19 infections filing showed. operating profit in the Indian subcontinent and other parts of Operating profit, however, jumped over Asia also present downside earnings risk, in- 400% to RM18.61 million from RM3.17 jumps crease vessel trading complexities and quar- million, on the back of higher charter rates, antine risks. lower vessel operating expenses, and rede- “Consequently, the shipping industry will livery of two loss-making chartered-in ves- BY ADAM AZIZ continue to stay in a volatile trading envi- sels, it said. theedgemarkets.com ronment and the path to economic recovery During the period, the group’s average is likely to be uneven in the coming quar- time charter equivalent rose 41.12% to ters,” it said. US$12,860 per day from US$9,108 per As at March 31, 2021, the group owns day the year before. and operates eight vessels, with one vessel Quarterly revenue fell 10.82% to committed to be sold to a third party for RM46.62 million from RM52.27 million approximately RM56 million. Two of its ves- but the group benefited from a 65% decline sels are under long-term charter, which are in lower voyage expenses to RM4.91 mil- scheduled for redelivery in early 2022 and lion, from RM14.03 million. Hire days fell mid 2023, it added. 28.76% to 748 days from 1,050 days, it said. Maybulk’s share price fell 4 sen or 5.93% On prospects, Maybulk sees the positive to close at 63.5 sen, valuing the group at situation in the dry bulk segment to be sus- RM635 million. THURSDAY MAY 20, 2021 10 THEEDGE CEO MORNING BRIEF

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ZAHID IZZANI MOHD SAID/THE EDGE

Judge stops Najib’s lawyer from asking ex-1MDB CEO about forged signatures

KUALA LUMPUR (May 19): The BY TIMOTHY ACHARIAM towards the payment of fees to Gold- judge in the 1MDB-Tanore trial today theedgemarkets.com man Sachs. stopped former premier Datuk Seri Na- From the US$2.721 billion, a sum jib Razak’s lawyer from asking a witness tenique Investment Fund and Devon- of US$1,060,606,065 was paid into the to verify purported forged signatures in shire Funds Ltd. account of two fiduciary funds, namely, bank documents. Azmi and Geh were authorised signato- Devonshire Funds Ltd and EEMF. De- Lawyer Wan Aizuddin Wan Moham- ries of 1MDB GIL, said Hazem, prompt- vonshire received US$646,464,649 in five med had questioned former 1Malaysia ing Wan Aizuddin to ask him to verify the tranches over two days (March 20 and 21, Development Bhd (1MDB) CEO Mohd signatures of the two men as they looked 2013). EEMF received US$414,141,416 in Hazem Abdul Rahman about signatures like a “cut and paste” job. three tranches, within the same two days. from transfer instructions of 1MDB’s Wan Aizuddin asked the witness to Devonshire transferred US$430 million subsidiary 1MDB Global Investment compare the size of the signatures, and the to Granton Property Holding Ltd, which Ltd (1MDB GIL), whereby hundreds curves in them, with the two signatories’ is a company controlled by Eric Tan, who of millions dollars were transferred out signatures in other documents is fugitive financier Jho Low’s partner. to shell companies, among others. Deputy Public Prosecutor Akram Ghar- On the same day Granton transferred Hazem had testified that he did not ib objected to this line of questioning, say- the whole of that sum to Tanore Finance, know that US$3 billion raised via a bond ing the witness is not a handwriting expert also a company controlled by Tan. On issuance by 1MDB GIL in 2013 was and is in no capacity to verify whether the the same day, (March 21, 2013), Devon- transferred out of the company’s BSI signatures are “copy and paste”. shire transferred US$210 million to Tan- Bank account in Switzerland. Agreeing with Akram, Justice Colin ore Finance Corporation. Then, between When asked if he had sanctioned these Lawrence Sequerah said that asking Hazem March 22 and 25, 2013, EEMF transferred transfers, Hazem said he did not know to authenticate the signatures would place US$250 million to Tanore, which there- about them, and that some of these trans- him in an “unfamiliar position”. fore by that date had US$890 million in fers included US$35 million to Yayasan “This is beyond his expertise, you can its hands. Rakyat 1Malaysia (YR1M), the corpo- submit on this at the end of the trial,” Col- Between March 21 and April 10, 2013, rate social responsibility arm of 1MDB. lin said. Tanore transferred US$681 million to Na- Wan Aizuddin then asked Hazem Even so, Hazem responded that in jib’s account. about 1MDB chief financial officer Azmi his opinion, the signatures did not look In the 1MDB-Tanore trial, Najib is Tahir and the sovereign wealth fund’s identical. charged with four counts of power abuse executive director of finance, Terence Out of the US$3 billion, a sum of to enrich himself with RM2.3 billion from Geh, who had purportedly sanctioned US$2.721 billion was disbursed into the 1MDB and 21 counts of laundering the the transfer of the funds into various account of 1MDB GIL with BSI Bank in same amount. He faces up to 20 years’ entities as well as shell companies Cys- Lugano, Switzerland. The balance went imprisonment if convicted. THURSDAY MAY 20, 2021 11 THEEDGE CEO MORNING BRIEF

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Rosmah lodges police report claiming ’ affidavit a blatant lie, afterthought

SUHAIMI YUSUF/THE EDGE BY HAFIZ YATIM theedgemarkets.com

KUALA LUMPUR (May 19): Datin Seri Rosmah Mansor through her aide last night lodged a police report against former attorney-general Tan Sri Tommy Thomas, alleging that Thomas lied about the validity of Datuk Seri Gopal Sri Ram’s appointment as the lead prosecutor in Ros- mah’s corruption trial. Rosmah’s aide Aizulhaimi Mohd Ter- mizi lodged the report at the Dang Wangi police station here. According to the police report sight- ed by theedgemarkets.com and news re- ports. Rosmah claimed the fact that Attor- ney-General Tan Sri Idrus Harun signed the authorisation letter for Sri Ram’s ap- pointment as the lead prosecutor in Ros- mah’s corruption trial “created doubt” about Sri Ram’s appointment. “This created doubt as on the day I filed the notice [to seek Sri Ram’s author- isation or fiat letter], the fiat was imme- diately issued. “This clearly shows there is a blatant lie, afterthought and deceit which preju- dice me,” she claimed in the police report. According to the police report, Ros- mah wants an investigation and action to On Monday (May 17), The Edge, quot- 6) filed an application at the High Court be undertaken against Thomas for alleged ing Thomas’ affidavit, reported that Thom- to nullify her corruption proceedings in- perjury regarding Sri Ram’s appointment. as claimed Sri Ram was appointed a sen- volving the RM1.25 billion solar-hybrid “The fact claiming that I (Rosmah) act- ior DPP in 2018 under Thomas’ general project for 369 rural schools in Sarawak. ed mala fide in raising the fiat issue now in control and direction as stipulated by law Rosmah’s defence team had also filed the middle of my trial is without basis as I to lead in several high profile criminal cas- an application to remove Sri Ram from only got to know questions surrounding it es, including Rosmah’s corruption trial. the prosecution in the case. (fiat issue) in my husband’s (former prime It was reported that Thomas claimed Rosmah’s applications are scheduled minister Datuk Seri ) appeal that Sri Ram, a former Federal Court to be heard on June 3 before High Court in the Federal Court. judge, enjoyed all powers of the public Judge Mohamed Zaini Mazlan. “My lawyers had also asked DPP (dep- prosecutor as his appointment was made Rosmah is facing corruption and mon- uty public prosecutor) Ahmad Akram under the Criminal Procedure Code. ey laundering charges. News reports in- Gharib to immediately after that case show “Since Sri Ram was under my general dicated that the three corruption charges the fiat letter, but he did not want to do so. control and direction, and was in a posi- involve the RM1.25 billion solar-hybrid The fact is I had, through a notice, asked tion to exercise all the powers of the public project for 369 rural schools in Sarawak. the prosecution prior to July 6, 2020 to prosecutor, I personally authorised him to It was reported that she is charged with be shown the fiat letter but they declined conduct other prosecutions as well,” Thom- soliciting, through her aide Datuk Rizal to do so,” Rosmah claimed. as was quoted as saying in the affidavit. Mansor, a RM187.5 million bribe from “This resulted in me filing the applica- It was reported that the affidavit was Jepak Holdings Sdn Bhd managing direc- tion on July 8, 2020 to seek Sri Ram’s fiat filed by Thomas to dismiss an application tor Saidi Abang Samsudin in exchange for and other relief that was deemed necessary. by Rosmah’s legal team to declare her tri- her assistance in ensuring the award of the It was only on April 8, 2021, following my al a nullity on the grounds that Sri Ram’s government project to Jepak. appeal at the Court of Appeal, that the appointment as lead prosecutor in the trial It was reported that Rosmah’s trial for prosecution agreed to give the fiat letter was “illegal, irregular and defective”. charges of money laundering and tax eva- signed by Idrus dated July 8, 2020 and it On May 7, it was reported that Ros- sion involving RM7.09 million will begin was not by Thomas,” Rosmah said. mah’s defence team had a day earlier (May in November 2021. THURSDAY MAY 20, 2021 13 THEEDGE CEO MORNING BRIEF

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Analysts trim TSH target prices for Resources Carlsberg as sees ninefold lockdowns choke jump in 1Q net demand for beer profit on higher BY LAM JIAN WYN palm oil prices theedgemarkets.com

KUALA LUMPUR (May 19): Analysts ongoing vaccination, with a full-blown BY JUSTIN LIM have trimmed their target prices (TPs) for roll-out expected in 2H21 (the second theedgemarkets.com Carlsberg Brewery Malaysia Bhd on ex- half of 2021). That said, we expect near- pectations that near-term demand for beer term weakness in its Malaysian opera- KUALA LUMPUR (May 19): TSH could be affected by lockdowns and other tions, plagued by potentially softer beer Resources Bhd’s net profit rose nine- restrictions aimed at getting a resurgence demand amid the resurgence in local fold to RM20.78 million in the first in Covid-19 cases under control. Covid-19 cases, to be partially alleviat- quarter ended March 31, 2021 In a note today, Hong Leong Invest- ed by sturdier Singapore operations due (1QFY21), from RM2.25 million a ment Bank (HLIB) Research analyst Gan to the latter’s better control of its Cov- year earlier, thanks to higher crude Huan Wen cut the counter’s TP to RM22 id-19 situation. palm oil (CPO) and palm kernel from RM22.50 earlier after rolling over its “We also take heart of its cost-disci- prices, partially offset by lower sales valuations and lowering its forecasts for pline enabling robust margins in the near contribution from the cocoa segment 2021 and 2022 by 8% and 7.4% respec- term. Post results, there are no revisions due to the pandemic. tively due to lower sales volume. of [our] earnings [forecasts] as results The group said profitability was “While we expect sales in 2Q21 (the were in line. While earnings will be chal- also affected by the higher export second quarter of 2021) to continue to lenging in 2Q, we are positive about a bet- levy and duty of RM52.6 million im- be sluggish from movement restrictions in ter performance in the subsequent quar- posed by Indonesia compared with Malaysia and Singapore, we reckon Carls- ters premised on an earnings recovery RM10.29 million in 1QFY20. berg is fairly valued at current price levels, with the vaccine roll-out, coupled with Quarterly revenue sank 5% to with FY21/22 (financial years ending Dec its pe-Covid-19 track record of inelastic RM198.72 million, from RM209.14 31, 2021 and 2022 respectively) forecast beer demand,” he said. million a year ago, the group said in yields of 3.6%/4.1%, which are decent in He maintained his “outperform” rating a filing with Bursa Malaysia. the current low interest rate environment,” of the counter. TSH said the average CPO price he wrote. Yesterday, Carlsberg reported that was RM3,010 per tonne, compared He noted that Carlsberg’s earnings rely its net profit for the first quarter ended with RM2,599 a year prior, while av- heavily on Malaysia and Singapore keeping March 31, 2021 (1QFY21) fell 8.91% to erage palm kernel price was higher a tight lid on Covid-19 cases and quickly RM66.46 million, from RM72.96 million at RM2,113 versus RM1,480 pre- vaccinating their populations, which would a year earlier, as it recorded lower sales in viously. eventually lead to the reopening of on- Malaysia, though this was partially mit- As for fresh fruit bunch produc- trade sales channels. igated by higher sales in Singapore and tion, the group achieved 228,188 “While we expect its FY21 earnings to lower operational cost. tonnes, up from 207,727 tonnes be stronger year-on-year (y-o-y) due to Quarterly revenue fell 9.81% to RM532 previously. somewhat lighter Covid-19 restrictions million from RM589.87 million following On a quarter-on-quarter basis, than in FY20, the recent reimplementation the reimposition of the movement control the group’s revenue went up mar- of movement restrictions in both Malay- order (MCO) from Jan 13 to Feb 18 in ginally from RM195.24 million in sia and Singapore is expected to result in several states, which impacted on-trade 4QFY20, while net profit fell 36.93% sluggish on-trade sales in 2Q21,” he said. consumption and caused weaker Chinese from RM32.95 million. Gan maintained his “hold” rating of New Year sales. TSH attributed the lower profit- the stock. On a quarter-on-quarter (q-o-q) ba- ability to a higher foreign exchange Meanwhile, Kenanga Research’s Ah- sis, however, the group’s net profit rose loss of RM11.9 million in 1QFY21, mad Ramzani Ramli lowered his TP for 75.1% from RM37.95 million for the compared with foreign exchange Carlsberg to RM24.10 from RM25.65 preceding quarter as revenue rose 12.6% gains of RM12.5 million in 4QFY20. based on a lower price-earnings ratio from RM472.54 million, supported by Noting that palm oil prices have (PER) of 25 times for FY21, compared a sales recovery in both Malaysia and been trading above RM4,000 per with 29 times previously, to reflect near- Singapore. tonne in recent weeks, boosted by term weakness from the resurging pan- Both Gan and Ahmad Ramzani deemed stronger soybean oil prices and con- demic, as well as prevailing and restrictive the results to be below expectations. cerns about weak CPO production, lockdowns. At 9.27am today, Carlsberg was the the group said it is optimistic about “Despite the resurging pandemic, we eighth top loser on the local bourse, drop- achieving a satisfactory performance maintain our view of an earnings recov- ping 10 sen or 0.45% to RM21.90, giving it in FY21. ery, which will depend on the efficacy of a market capitalisation of RM6.73 billion. THURSDAY MAY 20, 2021 14 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 19): Newly Tuju Setia Bhd listed construction services firm Tuju Se- Construction tia Bhd opened at 77.5 sen this morning, Sen 10.71% higher than its initial public offer- outfit Tuju Setia 90 ing (IPO) price of 70 sen. The stock rose by as much as 17.5 sen makes firm or 25% to 87.5 sen before paring gains to close at 74 sen — still up 40 sen from Main Market debut its IPO price, giving Tuju Setia a mar- 80 ket capitalisation of RM234.45 million. The stock, which saw 114.57 million theedgemarkets.com 78.5 sen 74 sen shares traded, was the sixth most traded stock of the day on the local exchange. and improve the efficiency of mainte- The firm said earlier it aimed to raise nance works. 70 up to RM56 million in proceeds in its Yesterday, the group told Bursa Ma- 9am 4.59pm IPO, of which RM32 million will be laysia that its wholly-owned subsidiary May 19, 2021 allocated for capital expenditure to be Pembinaan Tuju Setia Sdn Bhd has been utilised to purchase new construction awarded a contract worth RM189 million Source: Bloomberg machinery and equipment, and Build- for a high-rise construction project in Seri ing Information Modelling (BIM) sys- Kembangan, Selangor. tem software to upskill design and con- The project consists of a 35-storey small to be completed by July 31, 2024. struction activities. office-home-office (865 units) building, “The contract is expected to contribute Additionally, the group said it would 33 storeys of serviced apartments (526 positively to Tuju Setia and its subsidiary’s acquire land and construct new stor- units) and a 13-storey podium car park. earnings and net assets per share from the age facilities for better organisation and The contract has a duration of 38 financial year ending Dec 31, 2021 until utilisation of machinery and equipment months commencing on June 1, 2021, the completion of the contract,” it said.

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Bumi Armada JV inks agreement for FSRU project in Mumbai KUALA LUMPUR (May 19): Bumi Armada Bhd’s 49%-owned joint venture company (JVco) today inked a licence agreement with the Board of Trustees for the Port of Mumbai (MbPT) for a floating storage and regasification unit (FSRU) project. The JVco SP Armada Clean Energy Ventures Pvt Ltd (SPACEVPL) inked the agreement with MbPT to set up, operate and maintain the FSRU in Mumbai harbour for 30 years, Bumi Armada said in a filing. “At the end of the licence period, ownership of the infrastructure, which includes the pipeline and jetty, except for the FSRU, shall be transferred to MbPT. “To achieve a UCrest inks deal with Chinese financially successful project, SPACEVPL will have to sell the terminal capacity and re- contract manufacturers to produce gasification to potential customers. To this end, there is a focused marketing strategy in Sputnik V vaccines place,” the group added. — by Adam Aziz/theedgemarkets.com KUALA LUMPUR (May 19): UCrest Bhd has inked an agreement with two contract Scomi enters JV agreement to Techbond suspends Shah Alam plant manufacturers in China and secured the explore opportunities in rail industry ops after seven workers test positive capacity to produce Sputnik V vaccines. The KUALA LUMPUR (May 19): Loss-making for Covid-19 deal is a follow-up to a Memorandum of Scomi Group Bhd has inked a joint venture KUALA LUMPUR (May 19): Industrial Understanding (MoU) inked between UCrest (JV) agreement with Zuha Systems Sdn adhesive specialist Techbond Group Bhd is and the Russian Direct Investment Fund Bhd to jointly explore opportunities closing its factories in Kota Kemuning, Shah (RDIF) in April, wherein it was agreed that in the rail industry. “Zuha is primarily Alam, for a week from tomorrow (May 20) UCrest will identify and manage contract involved in the public transportation until May 26, after seven of its factory workers manufacturers for the production of the and energy sectors. Its business focus tested positive for Covid-19 during a voluntary Sputnik V vaccine for RDIF. The deal with areas include urban transport, rail, oil screening it conducted on its employees. the two Chinese contract manufacturers and gas and renewable energy amongst Employees who have had close contact with results in UCrest having secured the others,” Scomi said in a filing. “The JV will the infected workers will also be placed capacity to produce between 312 million target opportunities in new conventional under quarantine and undergo subsequent and 960 million doses in a 24-month period, rail and urban rail projects which are screenings, it said, adding it has carried out said UCrest, which is primarily involved anticipated in the country,” it said, adding deep cleaning and disinfecting on the whole in wireless and digital network products the JV is part of its efforts to restructure premises and its worker dormitories. It also and services. Under the MoU with RDIF, and rebuild the group. By utilising the assured that its operations in Johor and Sabah, UCrest is tasked to manage the contract maintenance expertise within the group, as well as those in , are unaffected and manufacturers including for the sourcing of the JV will potentially secure projects in are operating as usual. The temporary closure materials, coordinate work among them, and maintenance, repair and overhaul for the is not expected to have any significant impact get the necessary approvals to achieve the rail industry, it added. — by Sulhi Khalid/ on its operations and financial performance, it production and delivery of needed doses. — theedgemarkets.com added. — by Sulhi Khalid/theedgemarkets.com by Adam Aziz/theedgemarkets.com THURSDAY MAY 20, 2021 15 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 19): The Social Security Organisation (SOCSO) has re- ceived 1,758 complaints involving dubious payments and issues as of yesterday, according to Human Resources Minister Datuk Seri M Saravanan. From those complaints, 1,231 were found to be baseless, 340 cases involve suspected false and wrongful claims, while the remain- ing 187 cases are still under investigation. “The ministry and SOCSO take the allegations of misuse of personal informa- tion and false claims seriously by employ- ers who wish to apply for incentives under the economic stimulus package through the PenjanaKerjaya programme,” he said. Yesterday, former human resources PenjayaKerjaya 2.0’s Incen- minister M Kulasegaran urged the au- SOCSO receives tives and Training programmes. thorities to investigate claims that some “The employer was also found to have firms were faking their data 1,758 complaints made fraudulent documents after the form to obtain funds meant to incentivise hiring confirmation was received by SOCSO of- under the Penjana programme. on false incentive ficers, with a total of 36 employees having The Ipoh Barat MP claimed there were signed and confirmed that they are still employers who allegedly obtained or ap- package claims, working for the company involved. plied for the Penjana incentive without ac- “The case is currently being investigated tually hiring the people they said they hired. wage issues by the Anti-Fraud, Ethics and Compliance The Penjana hiring incentive pro- branch and it will be referred to the relevant gramme is an economic recovery incentive — HR minister enforcement agencies, if necessary,” he said. under the Ministry of Human Resources, The ministry also urged employers to ap- administered by SOCSO’s National Em- ply for incentives under the PenjanaKerjaya ployment Services, to promote job crea- BY SULHI KHALID website at penjanakerjaya.perkeso.gov.my, tion among employers while increasing theedgemarkets.com and not through any agents. employment prospects. “SOCSO has never appointed any mid- “SOCSO has also received a total of has been circulated last week, which claims dleman or agents to manage the applica- RM85.1 million from more than 8,000 em- that there is a syndicate using a company’s tion of this programme. ployers who failed to meet the prescribed employee data to obtain incentives under “For any complaints or inquiries, please requirements under the Wage Subsidy PenjanaKerjaya 2.0. contact the customer service line SOCSO Programme and made the repayments to “Preliminary investigations found that 1-300-22-8000 or 03 8091 5300 or email SOCSO,” the minister added. there is an irresponsible employer who at- to [email protected],” The ministry also addressed a video that tempted to make a false application under he said.

KUALA LUMPUR (May 19): PKR’s 15th gress under the new format, he said, was National Congress will continue according PKR National made following the announcement of the to schedule on June 4, 5 and 6, but it will movement control order (MCO 3.0) by now be held entirely online as opposed to Congress to be the government due to a sharp increase a hybrid format announced earlier, said in the number of Covid-19 infections, as the party’s chief organising secretary cum held entirely well as to comply with the set standard congress director Nik Ahmad. operating procedures (SOPs). In a statement today, he said the resolu- online Nik Nazmi said the party had already tion was made at the PKR political bureau written to the Registrar of Societies (RoS) meeting on Saturday. about the matter besides informing the He said the congress will begin with the Bernama National Security Council (MKN). PKR Women’s Congress on June 4, fol- He also called on all parties to continue lowed by the PKR Youth Congress (June to abide by the SOPs and take full respon- 5) and end with the PKR National Con- sibility in the effort to break the Covid-19 gress (June 6). chain of infection. “All 2,400 Keadilan (PKR) delegates Previously on May 3, PKR secre- and leaders will participate in this congress tary-general Datuk Seri Saifuddin Nasu- through the Zoom application from their tion Ismail at a press conference an- homes, and there will be no physical gath- nounced that the congress would be held ering. The media and the public may follow for two days in a hybrid format from June the conference via the live broadcast from 5, with the physical event to be held at the Keadilan’s social media account,” he said. Raja Muda Musa Hall in Section 7 Shah The decision to implement the con- Alam, Selangor. THURSDAY MAY 20, 2021 16 THEEDGE CEO MORNING BRIEF

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NEW YORK (May 19): The crypto bubble peak, in large part due to the company’s that inflated Bitcoin’s value past US$1 tril- Bitcoin plunge embrace. lion and added billions to nonsense digital tokens overnight is bursting. exceeds 25%, Wiped out Bitcoin plunged almost 30% to At the time, Tesla’s acceptance was hailed US$31,000, wiping out more than US$500 wipes US$500 as a watershed moment for the coin, with billion in value from the coin’s peak market many in the crypto world seeing it as yet value. It has erased all the gains it clocked billion from another step in its evolution. up following Tesla Inc’s Feb 8 announce- All that has been wiped out after Musk ment that it would use corporate cash to market value sent investors into a tizzy following a mass buy the asset and accept it as a form of of head-spinning tweets that started last payment for its vehicles. Ethereum, the week when he criticised Bitcoin’s ener- second-biggest coin, sank more than 40%, BY VILDANA HAJRIC & KATIE GREIFELD gy use. while joke token Dogecoin lost 45%. Bloomberg Tesla would suspend car purchases us- Bitcoin is now down more than 50% ing the token, he announced, calling recent from its record of almost US$65,000 set BLOOMBERG energy-consumption trends “insane”. Over in April. Fuelling the volatility is Tesla chief the weekend, after insinuating his electric executive officer Elon Musk, whose so- vehicle company might have sold its Bit- cial-media utterances have whipsawed the coin holdings, he sent out tweets clarifying crypto community. A statement from the that it had not. All of which had traders People’s Bank of China on Tuesday reiter- scrambling. ating that digital tokens could not be used “Realistically, it is not the first time Elon as a form of payment added to the sell-off. Musk’s tweets have been erratic and, frank- The sell-off dominated market chatter ly, wrong,” said Ulrik Lykke, executive di- on a day when equities also were tumbling rector at crypto hedge fund ARK36. “The and the Federal Reserve was set to release crypto markets are extremely emotional- minutes from its latest meeting. Critics ly driven and their participants are prone had warned for weeks that the moves in to overreacting to events they perceive as crypto assets were unsustainable and that negative.” any sign of a sell-off would lead to a rout. Chart watchers pointed to key technical levels that have failed. dropped, with Coinbase Global Inc falling Read also: “From a technical standpoint, the in- 5.2% in US pre-market trading and Mara- dicators are flashing red,” said Ipek Ozk- thon Digital Holdings Inc slumping 12%. Crypto investors fume as world’s biggest ardeskaya, senior analyst at Swissquote in Then there is Musk. platforms are disrupted Gland, Switzerland. “The next important With his often cryptic Twitter posts “The world’s biggest crypto-trading support level stands near US$37,000, then moving millions, the Tesla chief has be- platforms were hit by disruptions as digital the US$30,000 mark. There is a chance come a Svengali-like character in the world currencies from Bitcoin to Ethereum slid in a that we see a pullback to these levels and of crypto. Bitcoin embarked on a mul- collapse that wiped out billions of dollars in even below, at least in the short run.” ti-month rally following Tesla’s February market value.” Cryptocurrency-linked stocks also announcement, soaring to its US$64,870 Click here

BEIJING (May 18): China has banned fi- China shut down its local cryptocurrency nancial institutions and payment companies China bans exchanges, smothering a speculative mar- from providing services related to crypto- ket that had accounted for 90% of global currency transactions, and warned investors financial, payment bitcoin trading. against speculative crypto trading. In June 2019, the People’s Bank of It was China’s latest attempt to clamp institutions from China issued a statement saying it would down on what was a burgeoning digital trad- block access to all domestic and foreign ing market. Under the ban, such institutions, cryptocurrency cryptocurrency exchanges and Initial Coin including banks and online payments chan- Offering websites, aiming to clamp down nels, must not offer clients any service involv- business on all cryptocurrency trading with a ban ing cryptocurrency, such as registration, trad- on foreign exchanges. ing, clearing and settlement, three industry The statement also highlighted the risks bodies said in a joint statement on Tuesday. BY SAMUEL SHEN & TWINNIE SIU of cryptocurrency trading, saying virtual “Recently, crypto currency prices have Reuters currencies “are not supported by real val- skyrocketed and plummeted, and specu- ue”, their prices are easily manipulated, lative trading of cryptocurrency has re- viduals from holding cryptocurrencies. and trading contracts are not protected bounded, seriously infringing on the safety The institutions must not provide sav- by Chinese law. of people’s property and disrupting the ing, trust or pledging services of cryptocur- The three industry bodies are: the Na- normal economic and financial order,” rency, nor issue financial product related tional Internet Finance Association of Chi- they said in the statement. to cryptocurrency, the statement also said. na, the China Banking Association and China has banned crypto exchanges and The moves were not Beijing’s first the Payment and Clearing Association of initial coin offerings but has not barred indi- moves against digital currency. In 2017, China. THURSDAY MAY 20, 2021 17 THEEDGE CEO MORNING BRIEF

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China is winning the race to vaccinate the world, for now

HONG KONG/LONDON (May 19): The BY IAIN MARLOW & JAMES PATON partnerships in the midst of bilateral nego- Covid-19 pandemic has been a devastating Bloomberg Businessweek tiations for a large sale of urgently needed public-health catastrophe the world over. vaccines,” said Nicholas Thomas, an associ- For China, it has also provided an unprece- ate professor at the City University of Hong dented geopolitical opportunity. After it got Kong and editor of several books on global the outbreak under control, and with world So far the country health and foreign policy. “It would be fool- leaders distracted by their own countries’ has shipped about ish to conclude that the aid and supply of health struggles, it was able to use the chaos 265 million Covid-19 vaccines that China is now giving to Asia of the pandemic to step up political crack- vaccine doses, more and the world will not translate into a long- downs in Hong Kong and Xinjiang. Oth- than all other nations term diplomatic advantage.” er nations cried foul, but China persisted. combined, with The country’s upper hand may not last. Perhaps most important, early exports of India recognises China’s advantage, but its rapidly developed vaccines have provid- commitments to believes it will not be long-lasting and ex- ed Beijing with a potent diplomatic calling providing an impressive pects its own exports will ramp up in a few card in Africa, Asia, Latin America, and the 440 million more. months, according to a Foreign Ministry Middle East. And as the global death toll official in New Delhi who asked not to be mounts, Chinese officials get to brag about identified. Chinese diplomats’ sometimes their virus-fighting success around the world overzealous pressure tactics could also back- even as they gain greater access and influ- of developing nations through COVAX, the fire. Even Bangladesh complained about the ence in far-flung capitals. global vaccine initiative, which has managed local ambassador’s comments. “The US response to the epidemic is to ship only 68 million of the two billion dos- Another wild card is the reliability of Chi- nothing short of a mess and total failure,” es it hopes to send out by year end. “China nese shots compared with that of the other Chinese Foreign Ministry spokesman Zhao is going to be a critically important part- vaccines. The efficacy of the Sinovac vac- Lijian, one of the original wolf warrior dip- ner in the long run,” said Richard Hatchett, cine, for instance, varies wildly — from 50% lomats, named for their confrontational chief executive officer of the Coalition for to 90% — in studies. Global surveys have stance, said last month. “In contrast, China Epidemic Preparedness Innovations, one shown Chinese shots are the least favoured secured major strategic outcomes in fight- of the groups leading COVAX. in several places. Even in Hong Kong, only ing the virus.” The WHO authorisation, a de facto ap- 37% said they had take a Sinovac jab, com- About China, at least, he is not wrong. proval for regulators in poorer countries, pared with 56% for Pfizer Inc’s. So far the country has shipped about 265 could help unleash hundreds of millions of Western vaccine diplomacy with more million Covid-19 vaccine doses, more than doses of Chinese shots. The impact of the effective shots could easily push back gains all other nations combined, with commit- country’s contributions will also be mag- by China, according to Thomas, the Hong ments to providing an impressive 440 mil- nified by the absence of India, making this Kong academic. The official in New Del- lion more, according to Airfinity Ltd, a sci- “the best time for China to practise vac- hi said India remains a trusted partner for ence information and analytics company. cine diplomacy and to make more use of vaccines around the developing world and Other leading powers have not kept up. its first-mover advantage”, says Yanzhong that Chinese shots have not lived up to ex- President Joe Biden has vowed the US will Huang, a senior fellow for global health at pectations. become an “arsenal for fighting Covid-19”. the Council on Foreign Relations. Across Africa, nations have struggled with His administration promises to boost pro- Beijing’s vaccine diplomacy is clearly of vaccine hesitancy, suggesting China’s shots duction of US vaccines and donate 80 mil- the hardball variety. India’s desperately poor may languish in storage rather than gener- lion doses overseas by the end of June, in- neighbours in South Asia were among those ate the political goodwill Beijing intended. cluding 20 million authorised for US use China targeted. On April 27, the same day “Although some of my workmates have — the first time he has shared doses he could Chinese Foreign Minister Wang Yi organ- been vaccinated, I am still afraid to do it have given to Americans. Europe has done ised a virtual meeting with his counterparts because of what I’ve read on social media,” better, exporting about 118 million domes- in Afghanistan, Bangladesh, Nepal, Paki- said Passmore Mwanza, a 29-year-old su- tically produced doses so far, according to stan, and Sri Lanka, Minister of Nation- pervisor at a candy maker in Zimbabwe. Airfinity, even amid criticism for a slow start al Defence Wei Fenghe was in Bangladesh, Still, China’s contributions will be crucial to its vaccination drive at home. India, mean- pledging to enhance military cooperation. in the race to inoculate large populations while, had exported almost 69 million doses Within days, officials there gave emergency across the developing world before outbreaks to nearly 100 countries until it suffered the approval to the Sinopharm vaccine. Less — and variants — spread too widely. With world’s worst outbreak and halted further than two weeks later, China’s ambassador COVAX shipments delayed by the India ex- deliveries. to Bangladesh surprised his hosts with an port collapse, China may be the only choice China is about to get another big boost. unexpected warning: Any future coopera- in the near term for many poorer countries. After clearing Western-made shots, the tion with Australia, India, Japan, and the “The pandemic started as a Chernobyl World Health Organization (WHO) recent- US would inevitably damage the nation’s moment for China,” said Suisheng Zhao, ly authorised the vaccine made by China’s ties with China. director of the University of Denver’s Center Sinopharm Group Co. A nod for one from “Bangladesh, which was reliant on In- for China-US Cooperation. “It has become Sinovac Biotech Ltd is expected soon. This dian doses, is now being subjected to pres- an opportunity for China to demonstrate to will allow Chinese shots to flow to dozens sure from China over its strategic foreign the world that its rise cannot be stopped.” THURSDAY MAY 20, 2021 18 THEEDGE CEO MORNING BRIEF

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Chip crisis in ‘danger zone’ as wait times reach new record

BY IAN KING Bloomberg

SAN FRANCISCO/TAIPEI (May 19): Shortages in the semiconductor industry, which have already slammed automakers and consumer electronics companies, are getting even worse, complicating the global economy’s recovery from the coronavirus pandemic. Chip lead times, the gap between ordering a chip and taking delivery, increased to 17 weeks in April, indicating users are getting more desperate to secure supply, accord- ing to research by Susquehanna Financial Group. That is the longest wait since the firm began tracking the data in 2017, in what it describes as the “danger zone”. operating, the government may have to con- This has forced companies to redesign “All major product categories up consid- sider broader restrictions. products, shift priorities and, in at least one erably,” Susquehanna analyst Chris Rolland The country is home to Taiwan Semicon- case, completely abandon a project, said wrote in a note on Tuesday, citing power man- ductor Manufacturing Co (TSMC), which one of the people, asking not to be named agement and analog chip lead times among is the world’s most advanced chipmaker and because the information is not public. others. “These were some of the largest in- counts Apple Inc and Qualcomm Inc among About 70% of the companies that Rolland creases since we started tracking the data.” its many customers. Local manufacturers tracks have expanding lead times, compared Chip shortages are rippling through also produce less glamorous — but equally with 20% that have seen lead times contract. industry after industry, preventing com- critical — chips, such as display driver ICs NXP Semiconductors NV, a major auto panies from shipping products from cars that have been a particularly painful bottle- chip supplier, has lead times of more than to game consoles and refrigerators. Auto- neck for global production. 22 weeks now, up from around 12 weeks late makers are now expected to lose out on On Wednesday, Taiwan’s Centers for Dis- last year. STMicroelectronics NV, another US$110 billion in sales this year, as Ford ease Control raised the island-wide alert lev- key auto chip supplier, saw lead times rise Motor Co, General Motors Co, and others el, extending Covid-19-containment meas- by more than four weeks in April to more have to idle factories for lack of essential ures to the whole country. The same day, the than 28 weeks. components. That is undercutting eco- Water Resources Agency said Taiwan needs Such outsized increases may reflect nomic growth and employment, as well to tighten water-saving measures because over-ordering by some customers, who could as raising fears of panic ordering that may little rain has fallen during the traditional be concerned about the impact of shortages lead to distortions in the future. rainy season, aggravating a drought that has on their businesses. Historically, companies The chip industry and its customers also threatened production. have been able to cancel chip orders without watch lead times as an indicator of the bal- TSMC said in a statement that it will penalty, although that has begun to change. ance between supply and demand. A length- continue to tighten its water usage and “Beginning with January data, we have ening of the gap indicates that buyers of does not anticipate the measures will af- witnessed numerous large JUMPS in re- semiconductors are more willing to com- fect its operations. ported LTs,” Rolland wrote, referring to mit to future supply to avoid a recurrence In his report, Rolland wrote that the cur- lead times. “Whereas in prior years, an of shortfalls. Analysts track these numbers rent wait level of 17 weeks climbed from the individual company would typically move as a harbinger of hoarding that can lead to 16-week level and marked a fourth consecu- their stated LTs up and down just a few the accumulation of too much inventory and tive month of “sizeable” expansion. days in a given month, starting this year sudden declines in orders. Lead times for certain products are in- we have seen significant jumps in LTs that “Elevated lead times often compel ‘bad creasing sharply, even after months of short- have skewed our data.” behaviour’ at customers, including invento- ages. Power management chips, for example, ry accumulation, safety stock building, and spiked to 23.7 weeks in April, a wait time double ordering,” Rolland wrote. “These about four weeks longer than a month ear- Read also: trends may have spurred a semiconductor lier, according to Susquehanna. Industrial industry in the early stages of over-shipment microcontrollers order lead times extended Drought-hit Taiwan plans more water above true customer demand.” by three weeks, some of the steepest increas- curbs for chip hubs The situation has been complicated by a es Rolland has seen since he began tracking “Taiwan will tighten curbs on the use of resurgence of coronavirus cases in Taiwan, the numbers in 2017, he wrote. water from June 1 in the major chipmaking a key location for chip manufacturing. The Delays are often worse for smaller man- hubs of Hsinchu and Taichung as it battles country has closed schools, curbed social ufacturers, with headphone makers facing an islandwide drought, if there is no gatherings, and shut museums and public lead times longer than 52 weeks, according significant rainfall by then.” facilities. While businesses and factories are to people familiar with the supply chain. Click here THURSDAY MAY 20, 2021 19 THEEDGE CEO MORNING BRIEF

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BLOOMBERG China will need NEWS IN BRIEF to give up foreign China’s exchange controls demand for Tesla slumps, eventually — adding to headaches PBOC official after protest (May 19): Tesla Inc.’s Bloomberg growth in China slowed precipitously last month, adding to the company’s (May 19): China has to give up its control headaches after an embarrassing over the currency’s exchange rate even- protest at the Shanghai Auto Show and tually if it wants to achieve greater glob- a run of accidents involving its electric al use of the yuan, according to a central cars. In April, 11, 949 China-built bank official. We need to admit Teslas were registered in the country, The yuan exchange rate will have to that under the according to data from state-backed be determined by global market partic- condition of yuan China Automotive Information Net. ipants, and this will allow China to have internationalization, That’s down sharply from a record free cross-border capital flows and pur- we won’t be able to 34,714 registrations in March. Separate sue an independent monetary policy, Zhou control the exchange data released last week showed Tesla Chengjun, director of the People’s Bank sold 25,845 Chinese-made vehicles of China’s finance research institute, said rate, and China’s in April, down from 35,478 units in in a speech published Wednesday. central bank has to let March, according to China’s Passenger “We need to admit that under the go of exchange-rate Car Association. Of the April sales, condition of yuan internationalization, goals in the end.” 14,174 EVs were exported, due in part we won’t be able to control the exchange to demand from the European market, rate, and China’s central bank has to let PCA said. ­— Bloomberg go of exchange-rate goals in the end,” said the rising purchasing power of the cur- Zhou. He made the comments at a forum rency, as well as the Federal Reserve’s re- Click here to read the full story on April 16, according to a transcript re- peated monetary easing, according to the leased by the forum organizer. speech. The onshore yuan advanced to its The PBOC has made it clear it has strongest level since 2018 last week, even China to launch US$4.9b of REIT stopped regular intervention and will let though the PBOC tried to moderate the products in pilot the market play a bigger role in deciding gains by setting the daily fix at a weak- (May 19): China has approved the the exchange rate, Zhou said. He cited the er-than-expected level. country’s first batch of public real fact the yuan has weakened past 7 per U.S. The U.S. has abused its power to carry estate investment trusts, giving local dollar — previously seen as an important out sanctions through the dollar’s domi- governments another tool to finance psychological threshold — in the past two nance in global payments and settlements, infrastructure projects. The nine years, and said it’s one of the more volatile and more countries and market entities projects, involved in sectors ranging major currencies in the world. are hoping to reduce their reliance on the from toll roads to wastewater treatment, The yuan will appreciate against the dollar, Zhou said. This provides a great were approved by the China Securities U.S. dollar in the long term as a result of opportunity for China to promote wider Regulatory Commission on Monday, China’s continued economic growth and use of the yuan, he said. raising an estimated 31.2 billion yuan ($4.9 billion) in total, according to calculations by Bloomberg. The move is set to expand fundraising channels for debt-laden local governments, and allow retail investors to tap into what Goldman Sachs Group Inc. has estimated may become a $3 trillion market should the trial be expanded to include traditional real estate. China is introducing a framework that allows individuals to buy shares in a mutual fund, which then invests in asset-backed securities that indirectly hold the infrastructure assets. The trial has so far focused on infrastructure initiatives like highways and utilities. Most traditional real estate, such as malls and office buildings, are excluded from the first batch. ­ — Bloomberg THURSDAY MAY 20, 2021 20 THEEDGE CEO MORNING BRIEF

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(May 19): Adani Green Energy Ltd. said it renewables business along with partners. has agreed to buy SoftBank Group Corp.’s Adani Green The exit of SoftBank comes at a time renewable power business in India, as it when India has been courting foreign in- seeks to accelerate efforts to expand ca- to buy SoftBank’s vestors to fund its massive roll-out of clean pacity. energy. The world’s third biggest emitter The firm, controlled by billionaire Gau- US$3.5b of greenhouse gases and one of the worst tam Adani, signed pacts for the acquisition victims of air pollution plans to end its of a 100% interest in SB Energy India renewables unit dependence on coal and expand renew- from SoftBank and partner Bharti Group, able power capacity almost five times to according to a statement. The transaction 450 gigawatts. gives SB Energy an enterprise valuation BY RAJESH KUMAR SINGH French energy giant Total SE in Janu- of $3.5 billion, Adani said. Bloomberg ary agreed to acquire a minority stake in Adding the unit will help Adani Green Adani Green, as it also seeks to add global meet a goal of having 25 gigawatts of re- BLOOMBERG exposure to clean energy. newable power capacity earlier than pre- Indian government officials have been viously planned, as it targets a role as one debating whether to set a goal to zero out of the world’s largest suppliers of clean the country’s greenhouse gas emissions energy. The firm has been seeking acqui- by mid-century, though Prime Minister sitions to bolster its roster of assets, after Narendra Modi sidestepped making any being faced with delays in starting some specific new targets at a U.S.-hosted global large projects. summit last month. SB Energy has a portfolio of almost 5 “India, without any doubt, has been gigawatts of solar and wind assets in India, one of the few nations that has accelerat- of which 1.4 gigawatts are currently oper- ed its global commitment towards climate ational, according to Adani’s statement. change and we intend to do our part to All projects are backed by 25-year power execute on the promises made,” Adani, purchase agreements with buyers. Soft- chairman of Adani Group, said in the Bank holds an 80% interest in SB Energy, after talks to sell its stake to Canada Pen- statement. with Bharti holding the remaining 20%. sion Plan Investment Board fell through. Adani Green shares advanced as much Bloomberg News reported earlier that The Japanese mobile phone and in- as 5% on Wednesday following the an- Adani Green was in advanced talks for vestment company founded by billion- nouncement, extending the company’s a deal. aire Masayoshi Son had said in 2015 it more than five-fold surge in the past year SoftBank pursued a deal with Adani planned to invest $20 billion in the Indian to a market value of about $27 billion.

(May 19): Singapore Airlines Ltd’s full-year again this week after an increase in un- loss widened to S$4.3 billion (US$3.2 bil- Singapore linked cases. lion) after the “toughest year in its histo- Shares of Singapore Airlines closed ry” as the Covid-19 pandemic continues Airlines down 3.3% on Wednesday ahead of the to wreak havoc on global travel. earnings announcement. The stock has Group revenue slumped 76% for the posts S$4.3 bil gained 10% since January, broadly in 12 months ended March 31 to S$3.8 bil- line with the benchmark Straits Times lion, due to the plunge in passengers flown loss after Index, whose moves have been muted as across Singapore Airlines, SilkAir and Scoot the trade-dependent nation’s economy — the three airlines within the group, the worst-ever year withers. Singapore Airlines sank 33% in company said in a statement after close of 2020, its worst annual share-price perfor- trading Wednesday. mance since 2011. The carrier lost S$212 million the pre- BY KYUNGHEE PARK vious year, when the coronavirus pandemic Bloomberg was just starting. Click here to read the full story “Even though mass vaccination exercises are in progress in most of our major markets, the prognosis for the global airline industry Read also: remains uncertain,” Singapore Airlines said in its statement. Maersk CEO says capital markets day may “While domestic markets have recovered never be in-person again in some countries, international air travel re- “The world’s largest shipping company may mains severely constrained and its recovery never go back to in-person capital markets trajectory is still unclear.” days, as the pandemic looks set to leave a The International Air Transport Associ- permanent mark on some corporate traditions.” ation last month widened its estimate for “I think it will be many years before we return losses this year to about US$48 billion as Singapore Airlines that have no domestic to the old way of doing things, if we ever do,” new Covid flare-ups push back the time- market to fall back on. Soren Skou, the CEO of A.P. Moller-Maersk line for a start of international air travel. The In the latest blow, a long-awaited trav- A/S, said in an interview.” situation is particularly dire for carriers like el bubble with Hong Kong was delayed Click here THURSDAY MAY 20, 2021 21 THEEDGE CEO MORNING BRIEF

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NEWS IN BRIEF

UK house prices register fastest UBS said to start round of job cuts across BlackRock doubles its stake in Son’s annual growth since 2007 investment bank, wealth SoftBank Group to 5.2% (May 19): U.K. house prices rose in (May 19): UBS Group AG has started a broad TOKYO (May 19): BlackRock Inc, the world’s March at their fastest annual pace since round of job cuts across its largest divisions as largest asset manager, has more than doubled the financial crisis as tax incentives and part of a restructuring plan intended to save the its stake in Masayoshi Son’s SoftBank Group a brightening economic outlook injected bank $1 billion over the next three years. The Corp. BlackRock Japan Co owns 5.15% renewed vigor into the property market. reductions are taking place in the investment of SoftBank through a variety of entities, Values surged 10.2% from a year earlier, bank, wealth management unit and Swiss according to a filing with Japan’s Finance the largest increase since August 2007, business, ranging from managing director to Ministry. That is up from 2.5% previously, the Office for National Statistics said junior employees, people with knowledge of the making the New York-based fund manager Wednesday, citing Land Registry data. matter said. Over the next three years, as many SoftBank’s fourth-biggest shareholder after Prices surged 1.8% in March alone, as 700 positions are expected to be eliminated in Son, Nomura Holdings Inc, and JPMorgan more than in any month since April Switzerland alone, with the bulk at the corporate Chase & Co, data compiled by Bloomberg 2014. The average value now stands at cost center and about 200 between wealth showed. SoftBank’s stock has more than a record 256,405 pounds ($363,609). management and the bank’s Swiss unit for tripled from its pandemic low in last year’s The surge came after Chancellor Rishi personal and corporate banking, the people said. March, helped by an unprecedented US$23 Sunak extended a tax cut on property That’s on top of about 125 cuts still to come from billion buy-back. But as the repurchase purchases, saving buyers as much a previous wealth restructuring. Chief Executive programme ended last week, the stock began 15,000 pounds. Surveys suggest the Officer Ralph Hamers, in his first year in the job, is to surrender gains absent a new commitment. housing market picked up momentum taking a deep look at where he can cut costs and The shares have tumbled 20% from a two- in April as coronavirus lockdown digitize the bank’s offering. During first quarter decade high in mid-March, even after it restrictions began to ease, raising hopes earnings last month, the bank said that it would reported a fourth-quarter profit that was the that prices will weather the phasing out take a $300 million restructuring charge related highest ever for a listed Japanese company. of the stamp-duty holiday from the end to the cuts in the second quarter, without giving Son controls about a third of the company of next month. In March, house prices any concrete details. UBS declined to comment. through various vehicles, Bloomberg data rose fastest in northeast England and The job cuts this month are a first wave, the showed. Nomura has a 6.84% stake, while Yorkshire and The Humber, adding to people said, as more reductions are expected JPMorgan owns 5.79%. — Bloomberg evidence the people forced to work from over the next three years as the bank rolls out home during the pandemic are taking its digital strategy. At least a dozen managing Singapore rebuts news report from the opportunity to move out of big urban directors and junior employees in the advisory India on ‘Singapore variant’ of centers. Values in London and southeast and trading units of the investment bank recently Covid-19 England rose just 1%. Prices in the U.K. lost their jobs, while another five managing SINGAPORE (May 19): There is no “Singapore capital have risen just 3.7% over the past directors and several executive directors in the variant”, said the republic’s Ministry of 12 months, by far the lowest growth rate wealth management division were also let go, Health (MOH) in response to several news of any region. They’re still almost double the people said. The investment bank cuts were reports in India claiming a new variant in the national average at 500,310 pounds. mostly roles that almost exclusively served the Singapore. “The strain that is prevalent in — Bloomberg wealth unit’s clients, the people said. — Bloomberg many of the Covid-19 cases in recent weeks is the B.1.617.2 variant, which originated in India. Phylogenetic testing has shown this EU agrees to ease travel restrictions on non-EU tourists B.1.617.2 variant to be associated with several BRUSSELS (May 19): European Union countries agreed on Wednesday to ease Covid-19 clusters in Singapore,” said the ministry’s travel restrictions on non-EU visitors ahead of the summer tourist season, two EU spokesperson in a statement issued late last sources said. Ambassadors from the 27 EU countries approved a European Commission night. “There is no truth whatsoever in the proposal from May 3 to loosen the criteria to determine “safe” countries and to let in assertions found within the reports,” said the fully vaccinated tourists from elsewhere. They are expected to set a new list this week spokesperson. The MOH was referring to or early next week. Based on data from the European Centre for Disease Control and news reports by Hindustan Times quoting Prevention, people arriving from Britain and a number of other countries would meet Delhi Chief Minister Arvind Kejriwal with the new criteria, but US residents would not. One EU diplomat said cases of the Indian the headline “Coronavirus variant found in variant in Britain would need to be taken into account, although individual EU countries Singapore can be India’s 3rd wave, extremely are already setting their own policies. Portugal lifted a four-month travel ban on British dangerous for kids, warns Arvind Kejriwal”. tourists on Monday. Under current restrictions, people from only seven countries, Indian news portal NDTV also carried a story including Australia, Israel and Singapore, can enter the EU on holiday, regardless of relating to the so called variant with the title whether they have been vaccinated. The current main criterion is that there should be “Stop Singapore Flights: Arvind Kejriwal To no more than 25 new Covid-19 cases per 100,000 people in the previous 14 days. The Centre Over New Covid Strain”. Both were trend should be stable or decreasing and there should be a sufficient number of tests, published yesterday. In a separate statement, which would need to show a minimum percentage of negative tests. Variants of concern Singapore’s Ministry of Foreign Affairs (MFA) can be taken into account. The Commission proposed raising the case rate to 100. said it regrets the unfounded assertions made The EU ambassadors opted instead for 75. For inoculated people to gain access, they on Facebook and Twitter by Arvind Kejriwal would need to have received an EU-approved vaccine, with those with a World Health that a variant of Covid-19 found in Singapore Organization emergency listing will be considered. An emergency brake would be used is particularly harmful to children and could to limit the risk of variants entering the bloc. — Reuters cause a third wave of infections in India. — Bernama THURSDAY MAY 20, 2021 22 THEEDGE CEO MORNING BRIEF

WORLD

A SPAC will buy back its own SPAC and pay a staggering premium

BY CRYSTAL KIM & TOM CONTILIANO Bloomberg

NEW YORK/WASHINGTON (May 19): It is the latest twist in the world of blank- cheque mergers: A company plans to go public with a special-purpose acquisition company (SPAC) and use it to buy back an affiliate that it took public using anoth- er SPAC. This circular scenario revolves around a drug maker called Roivant Sciences Ltd, which wants to merge with a SPAC and then take over a SPAC that acquired Immunovant Inc from Roivant less than two years ago. What is more, Roivant said it knows something that everyone else does not about its former unit, and it is willing to pay a pre- mium for the shares — perhaps as much as 70% by one estimate. combination valued at about US$7.3 billion, stones were met. They were worth a lot A SPAC-on-SPAC deal is such an oddity according to filings. Roivant would be the more back in February, before Immuno- that people who follow shell companies can- surviving entity, and in turn, would offer a vant plunged from more than US$43 after not remember it happening before, or any- mix of stock and cash to buy up shares that pausing a trial of its IMVT-1401 for thyroid thing like Roivant’s head-spinning version. it does not already own in Immunovant, an eye disease, citing elevated total cholesterol “In the years I’ve been analysing SPACs, early-stage drug maker. Roivant spun that off and low-density lipoprotein or LDL. I’ve never seen a transaction like this,” said in 2019 into a SPAC called Health Scienc- Neil Danics, founder of SPAC Analytics in es Acquisitions Corp, in return for shares SPACs, spin-offs Toronto and who has been providing re- and other considerations initially valued at Roivant is no stranger to drug develop- search on the industry since 2007. US$395 million. ment. Led by charismatic co-founder Vivek Roivant outlined the machinations in reg- Ramaswamy since 2014, it houses several ulatory filings amid wobbling enthusiasm for Monoclonal antibodies early-stage biopharmaceutical units, and has SPACs, which collectively have lost about a The reason Roivant is willing to pay up is spun out several companies using traditional quarter of their value since their February not immediately clear. Human trials on Im- initial public offerings and SPACs. peak amid tighter scrutiny from regulators. munovant’s main prospect, a monoclonal The company historically operated as an They are called blank-cheque companies be- antibody injection aimed at ailments such as in-licensing drug developer, buying rights cause they raise money from investors with myasthenia gravis and thyroid eye disease, for other companies’ drugs to further devel- the goal of buying an existing private busi- were halted on Feb 2 because of concern op them. At last count, its 800 employees ness, typically without identifying a target. about potential side effects. worked on more than 40 potential medicines In this case, Roivant already said in a Managers at Roivant are pushing ahead with two approvals from the Food and Drug March filing it wanted to reacquire Immu- anyway, saying that as the parent compa- Administration. Ramaswamy stepped down novant, which is testing a treatment for auto- ny with a 57.5% stake, they have received as chief executive in January to become ex- immune diseases. There is a whiff of hidden “non-public” information about Immuno- ecutive chairman, with finance chief Mat- value, because Roivant specifically said it is vant. Roivant representatives declined to thew Gline taking his place. willing to pay more than the current price, comment on the transaction. Completion “I want Roivant to be seen as a next- a premium that Robert W Baird & Co es- of Roivant’s deal with Montes is expected gen pharma company,” Gline said in an in- timated could amount to US$1.1 billion. in the third quarter, and more data about terview. He pointed to recent investments Immunovant now trades around US$15 a Immunovant’s drug may come out by then. in computational tools for drug discovery share with a market value of about US$1.5 “The market would be happy with a pre- as well as drug development, including billion. mium transaction,” Baird’s Brian Skorney Roivant’s acquisition of Silicon Therapeu- “If you can raise a bunch of money with said about Immunovant, whose shares trade tics. a SPAC and then use that relatively cheap about 11% higher than when it merged with Some holders did not wait to see how it cash to buy a company at a valuation they Health Sciences. “There’s been some am- all turns out. Adage Capital Partners sold find attractive — that seems like a rational biguity — concerns about safety problems its entire stake in Immunovant during the approach,” said Nikolai Roussanov, a finance that cut the stock in half from highs. Maybe first quarter. RTW Investments LP — which professor at the University of Pennsylvania’s Roivant knows it’s a moderate issue.” is providing bridge financing for Roivant’s Wharton School. Roivant itself showed a paper gain of SPAC deal with Montes — cut its holdings The plan goes like this: Roivant has about 117% on Immunovant, with more by 16% to 6.36 million shares, leaving it with proposed to be acquired by a SPAC called than half coming from “earnouts” that a 6.5% stake. Representatives for Adage and Montes Archimedes Acquisition Corp in a granted Roivant more shares when mile- RTW did not respond to messages. THURSDAY MAY 20, 2021 23 THEEDGE CEO MORNING BRIEF

WORLD

Spectre of 1960s inflation take-off haunts US economy today

WASHINGTON (May 19): A newly elected BY RICH MILLER “We’re all very familiar, at the Fed, with president promising to tackle racial injus- Bloomberg the history of the 1960s and ‘70s,” he told tice and build a better and fairer economy reporters on April 28 after the central bank and society. A Federal Reserve (Fed) chair- BLOOMBERG reaffirmed its ultra-easy policy of near zero man who had voiced satisfaction with the interest rates and massive bond purchases. course of monetary policy the previous year. “We know that our job is to achieve 2% A sharply accelerating economy with an in- inflation over time.” flation rate that has been below 2% for years. White House officials also have played 2021? No, 1965, a year that marked the down worries about overheating and have start of a years-long climb in inflation to portrayed the administration’s push for double-digit levels the following decade. more spending as long-term investments That is an upward trend that some experts rather than short-term fillips to demand. fear could be about to begin today, as a su- But they have made clear that it is the po- per-charged federal budget combines with litically independent Fed’s job to make sure a lax monetary posture to once again over- price hikes do not run amuck. heat the economy. Powell is betting that structural forces “If we do not have a recession that exerts that became ingrained in the economy after disinflation, the odds are better than even Joe Biden the inflationary 1970’s will help limit price that inflation will exceed 3% over the next pressures as growth takes off. five years,” former Treasury secretary and budget to reshape America. He has already “We think that the inflation dynam- paid Bloomberg contributor Lawrence Sum- won congressional approval of a US$1.9 ics that we’ve seen around the world for a mers said. “They’re one in four that we will trillion package and is seeking some US$4 quarter of a century are essentially intact,” have at least a year of inflation above 5%.” trillion more for an economy that is already he told lawmakers in March. “The US has A marked speed-up in inflation — it is booming coming out of the pandemic. had low inflation for some time, and we averaged just 1.5% over the past 10 years Some economists also see disturbing think those dynamics haven’t gone away.” based on the Fed’s favourite measure — parallels in Fed policy between now and Those dynamics include increased glo- would damage the US economy, robbing then. They worry that the Fed’s new strate- balisation — and the cheaper-priced im- consumers of the buying power needed to gic framework — it is openly seeking higher ports it brings — waning worker bargaining keep growth going. It would also undercut inflation — risks letting price increases get power, and well-anchored inflation expec- buoyant financial markets by putting up- out of control, just as occurred more than tations. If inflation is seen as staying sub- ward pressure on interest rates. a half century ago. dued, that can act as a sort of self-fulfilling Investors got a hint of what might be in While then-Fed chairman William Mc- prophecy: Workers do not feel compelled store last week, with news that consumer Chesney Martin had a nasty confrontation to press for outsized wage increases while prices jumped 0.8% in April alone. While with Johnson at the end of 1965 after the companies are more inclined to cut costs some increase had been expected, the size central bank raised interest rates, economists than raise prices. of the run-up surprised forecasters inside generally fault him for not acting more force- Summers said he is “very concerned” and outside the Fed, raising fresh questions fully to restrain a rise in inflation to 4.9% at about the inflation outlook and suggested about consensus projections that inflation the start of 1970. that the Fed’s faith in well-moored expec- will ebb after a temporary rise on the back The risk is that a potent mix of su- tations may end up misplaced. of a reopening of the economy. per-loose fiscal and monetary policies will “I can’t understand how they can say Minutes of the Fed’s April 27-28 policy again end up straining the economy’s ca- that this is the biggest policy revolution in meeting will be released at 2pm Washing- pacity to produce enough supply to keep 45 years since the Great Society and the ton time and could shed more light on the up with the elevated demand, leading to Fed is having the most radical change in internal debate over price pressures and po- widespread price increases. its operating model in a generation, but we tential overheating. “History doesn’t necessarily have to re- know from experience that expectations peat, but the fact that it happened before are anchored,” he said. ‘Fairly relaxed’ does mean it can happen again,” said Peter While he does not see anything like the “I’m fairly relaxed but not as relaxed as I Hooper, global head of economic research economic overheating Summers fears, was,” said former Fed vice chairman and for Deutsche Bank AG. Blinder said he would not be surprised if Princeton University professor Alan Blind- He sees at least a one-in-five possibility inflation rises too high for the Fed’s lik- er. “I’m moving a bit in the more alarmed of inflation rising to 3% or more over the ing sometime in the next few years. That direction, but not to the Summers camp.” next few years, markedly above the average could prompt a reaction from the central The argument of those who worry about 2% target that Fed chairman Jerome Powell bank that inadvertently tips the economy a rerun of the 1960’s rests with the simple and his colleagues adopted last year. into what is a “hopefully mild” recession. law of supply and demand. “The Summers view — which you can Just as then-president Lyndon Baines Powell pushes back summarise as saying there is a hell of a lot Johnson did in 1965 with his Great Society Powell has pushed back on concerns that of aggregate demand pushing on less ag- spending programmes, current command- the central bank will repeat its inflationary gregate supply — is not completely wrong,” er-in-chief Joe Biden wants to use the federal mistakes. he said. “There is a point there.” THURSDAY MAY 20, 2021 24 THEEDGE CEO MORNING BRIEF

MARKETS

CPO RM 4,302.00-155.00 OIL US$ 67.58-1.13 RM/USD 4.1398 RM/SGD 3.1058 RM/AUD 3.2068 RM/GBP 5.8638 RM/EUR 5.0513

Top 20 active stocks NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) FOCUS DYNAMICS GROUP BHD 469.4 0.000 0.060 -90.77 382.3 LKL INTERNATIONAL BHD 296.5 0.055 0.405 -55.74 208.4 DAGANG NEXCHANGE BHD 178.0 -0.065 0.705 213.33 1675.5 CAREPLUS GROUP BHD 148.8 0.380 2.720 33.02 1496.2 TUJU SETIA BHD 114.57 0.04 0.74 0.00 234.5 ADVENTA BHD 92.4 0.440 2.510 64.05 383.5 GREEN OCEAN CORP BHD 91.6 0.005 0.045 -50.00 79.2 CENSOF HOLDINGS BHD 82.3 0.035 0.390 47.17 215.4 UCREST BHD 81.5 -0.040 0.330 112.90 205.2 MTOUCHE TECHNOLOGY BHD 70.0 0.030 0.390 14.40 55.6 World equity indices PEGASUS HEIGHTS BHD 67.7 0.000 0.020 -20.00 211.8 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE BUMI ARMADA BHD 66.3 -0.030 0.430 22.86 2534.8 (%) (%) NICHE CAPITAL EMAS HOLDINGS 65.7 -0.010 0.240 0.00 175.6 DOW JONES 34,060.66 -267.13 -0.78 INDONESIA 5,760.58 -73.81 -1.27 TANCO HOLDINGS BHD 65.3 -0.010 0.145 190.00 208.2 S&P 500 4,127.83 -35.46 -0.85 JAPAN 28,044.45 -362.39 -1.28 HLT GLOBAL BHD 61.4 0.140 1.150 0.88 813.2 NASDAQ 100 13,217.68 -95.23 -0.72 KOREA 3,173.05 38.53 1.23 PRIVASIA TECHNOLOGY BHD 56.5 -0.030 0.170 6.25 104.4 FTSE 100 6,955.64 -78.60 -1.12 PHILIPPINES 6,245.71 0.97 0.02 VELESTO ENERGY BHD 56.0 -0.005 0.140 0.00 1150.2 AUSTRALIA 6,931.66 -134.32 -1.90 SINGAPORE 3,104.21 -38.42 -1.22 AT SYSTEMATIZATION BHD 50.2 0.010 0.095 -48.65 407.5 CHINA 3,510.97 -18.05 -0.51 TAIWAN 16,132.66 -13.32 -0.08 RUBBEREX CORP M BHD 48.8 0.120 1.280 -8.57 1065.3 HONG KONG 28,593.81 399.72 1.42 1,562.24 -4.56 -0.29 HIAP TECK VENTURE BHD 47.0 -0.035 0.530 15.22 742.0 INDIA 49,902.64 -290.69 -0.58 VIETNAM 1,262.49 9.81 0.78 Data as compiled on May 19, 2021 Source: Bloomberg Data as compiled on May 19, 2021 Source: Bloomberg

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

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (‘000) CHANGE CAP (%) (RM MIL) (%) (RM MIL) WIDETECH MALAYSIA BHD 3.120 30.00 917.5 420.00 139.6 PRICEWORTH INTERNATIONAL BHD 0.015 -25.00 1414.4 -50.00 67.6 INIX TECHNOLOGIES HOLDINGS BHD 0.140 27.27 19906.1 -54.10 65.3 COMPUGATES HOLDINGS BHD 0.020 -20.00 2451.0 0.00 61.4 ADVENTA BHD 2.510 21.26 92412.1 64.05 383.5 SANICHI TECHNOLOGY BHD 0.160 -20.00 40482.0 -43.35 39.2 SAND NISKO CAPITAL BHD 0.725 17.89 5132.6 123.08 74.8 GREEN PACKET BHD 0.275 -17.91 34884.2 -34.52 344.2 CAREPLUS GROUP BHD 2.720 16.24 148844.8 33.02 1496.2 FCW HOLDINGS BHD 1.100 -16.03 183.4 8.91 275.0 LKL INTERNATIONAL BHD 0.405 15.71 296483.5 -55.74 208.4 OVERSEA ENTERPRISE BHD 0.110 -15.38 6973.0 -48.03 144.1 NEXGRAM HOLDINGS BHD 0.040 14.29 18433.4 -11.11 113.9 TIGER SYNERGY BHD 0.055 -15.38 1819.1 -54.17 80.8 HLT GLOBAL BHD 1.150 13.86 61398.8 0.88 813.2 PRIVASIA TECHNOLOGY BHD 0.170 -15.00 56459.5 6.25 104.4 GREEN OCEAN CORP BHD 0.045 12.50 91593.2 -50.00 79.2 PDZ HOLDINGS BHD 0.030 -14.29 773.3 -66.67 30.3 IQZAN HOLDING BHD 0.090 12.50 39.1 -21.74 16.6 EA TECHNIQUE M BHD 0.120 -14.29 1477.7 -59.32 63.7 ASIA BRANDS BHD 0.675 12.50 35.4 5.47 157.0 KEY ALLIANCE GROUP BHD 0.035 -12.50 4129.5 -30.00 82.4 FLEXIDYNAMIC HOLDINGS BHD 0.500 12.36 7123.1 0.00 141.9 BORNEO OIL BHD 0.035 -12.50 10074.4 -12.50 237.6 AT SYSTEMATIZATION BHD 0.095 11.76 50181.9 -48.65 407.5 HENG HUAT RESOURCES GROUP 0.605 -12.32 358.4 146.04 83.9 SOLUTION GROUP BHD 1.280 11.30 26902.5 7.56 524.5 CONCRETE ENGINEERING PRODUCTS 0.915 -12.02 102.1 45.24 68.3 RUBBEREX CORP M BHD 1.280 10.34 48755.8 -8.57 1065.3 SILVER RIDGE HOLDINGS BHD 0.330 -12.00 3540.2 -43.10 56.0 M3 TECHNOLOGIES ASIA BHD 0.055 10.00 1289.8 -15.38 42.4 MELATI EHSAN HOLDINGS BHD 0.690 -11.54 580.1 36.63 80.3 CENSOF HOLDINGS BHD 0.390 9.86 82263.9 47.17 215.4 FINTEC GLOBAL BHD 0.040 -11.11 40346.2 -50.00 145.8 PARAGON GLOBE BHD 0.770 9.22 2054.7 27.27 143.7 UCREST BHD 0.330 -10.81 81467.2 112.90 205.2 XIDELANG HOLDINGS LTD 0.060 9.09 9626.3 -14.29 127.0 CME GROUP BHD 0.045 -10.00 1133.5 -25.00 39.6 MILUX CORP BHD 0.725 9.02 10969.8 27.19 170.4 KEY ASIC BHD 0.145 -9.38 38493.8 81.25 184 Data as compiled on May 19, 2021 Source: Bloomberg Data as compiled on May 19, 2021 Source: Bloomberg

Top gainers (ranked by RM) Top losers (ranked by RM) NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP (%) (RM MIL) (%) (RM MIL) WIDETECH MALAYSIA BHD 3.120 0.720 917.5 420.00 139.6 FRASER & NEAVE HOLDINGS BHD 26.840 -0.780 212.9 -16.33 9844.3 ADVENTA BHD 2.510 0.440 92412.1 64.05 383.5 CARLSBERG BREWERY MALAYSIA 21.480 -0.520 273.0 -7.57 6567.5 SUPERMAX CORP BHD 5.020 0.380 38651.0 -16.47 13140.5 MALAYSIAN PACIFIC INDUSTRIES 36.000 -0.500 205.9 38.67 7160.3 CAREPLUS GROUP BHD 2.720 0.380 148844.8 33.02 1496.2 TRANSOCEAN HOLDINGS BHD 5.190 -0.460 725.3 556.96 234.1 HARTALEGA HOLDINGS BHD 9.910 0.360 7247.5 -18.37 33890.4 HEINEKEN MALAYSIA BHD 24.780 -0.420 229.5 7.65 7486.0 VITROX CORP BHD 15.120 0.180 144.4 2.86 7139.3 HENGYUAN REFINING CO BHD 5.570 -0.360 2173.8 -7.01 1671.0 COMFORT GLOVE BHD 2.430 0.180 22563.2 -17.35 1410.5 AEON CREDIT SERVICE M BHD 11.980 -0.300 103.5 -0.17 3058.6 SCGM BHD 2.250 0.150 2090.5 2.74 430.9 PETRONAS DAGANGAN BHD 18.940 -0.300 259.2 -11.50 18816.0 COMPUTER FORMS MALAYSIA BHD 2.800 0.150 2.1 23.89 114.8 D&O GREEN TECHNOLOGIES BHD 4.110 -0.240 12099.8 80.26 4845.9 HLT GLOBAL BHD 1.150 0.140 61398.8 0.88 813.2 DUTCH LADY MILK INDUSTRIES BHD 34.460 -0.240 5.4 -8.11 2205.4 SOLUTION GROUP BHD 1.280 0.130 26902.5 7.56 524.5 GREATECH TECHNOLOGY BHD 5.000 -0.230 2603.9 9.89 6260.0 BRITISH AMERICAN TOBACCO M’SIA 15.100 0.120 1534.8 7.24 4311.5 FCW HOLDINGS BHD 1.100 -0.210 183.4 8.91 275.0 RUBBEREX CORP M BHD 1.280 0.120 48755.8 -8.57 1065.3 PETRON MALAYSIA REFINING 4.600 -0.210 168.4 -12.38 1242.0 KOSSAN RUBBER INDUSTRIES 4.420 0.120 15719.8 0.38 11278.2 DUFU TECHNOLOGY CORP BHD 3.950 -0.200 708.8 21.17 2059.4 SAND NISKO CAPITAL BHD 0.725 0.110 5132.6 123.08 74.8 MI TECHNOVATION BHD 3.120 -0.180 1362.0 -20.81 2559.2 CORP BHD 5.450 0.110 22048.5 -10.95 43623.8 KOBAY TECHNOLOGY BHD 4.380 -0.170 216.3 83.26 438.4 NESTLE MALAYSIA BHD 135.300 0.100 156.9 -2.59 31727.9 ANN JOO RESOURCES BHD 2.530 -0.170 4647.8 61.15 1366.5 FAR EAST HOLDINGS BHD 3.090 0.090 11.0 9.57 1835.0 LOTTE CHEMICAL TITAN HOLDING 3.050 -0.160 8340.3 10.11 6932.6 GENTING PLANTATIONS BHD 8.690 0.090 1022.3 -10.73 7796.7 DATAPREP HOLDINGS BHD 1.740 -0.150 28254.7 866.67 1080.4 PROLEXUS BHD 1.050 0.080 3864.6 -7.89 187.0 GENTING BHD 4.64 -0.15 9945.0 5.79 17866.7 Data as compiled on May 19, 2021 Source: Bloomberg Data as compiled on May 19, 2021 Source: Bloomberg