Harith Petronas MARCH 2020 PP19507/11/2019 (035148) Iskander 03 reveals the to pay serious RM24 bil in OF business dividends behind to govt comedy. P. 4 ous ri d Read about it e se hin th s be ls nes edy vea usi m in PURSUIT re b co 03 PP 19339/05/2018(034908) 9 772289 234001 www.focusmalaysia.my MONTHLY MARCH 2020 MALAYSIA RM8 | ISSUE 03 The high Focus List Why is a Why a cost of richest PDP for shadow ‘iconic’ women in RM46 bil economy pylons Malaysia PTMP okay? matters P.15 P.18&20 P.46 P.59 The economic cost of political TURBULENCE P.6-8 Project U_Focus Malaysia March.pdf 1 21/02/2020 3:32 PM Your New Astro Experience Introducing Ultra Box Truly Yours, Truly U. Link to your free Astro GO to enjoy: 4K New Home Discover 4K UHD Cloud Play From Search Multi-Screen Stop Here, Screen VOD Recording Start Continue There Find out more at www.astro.com.my/ultra 2 contents FocusM | March 2020 10 Prolonged political tumult will take its toll on the markets P.6-8 26 Mainstream 37 Tax expert: Make it a law to pay interest on GST refunds 4 Petronas’ FY19 net profit down 27% to RM40.5 bil 38 A broad-based stimulus package may be needed 10 Pharmaniaga expects to return to the black in FY20 38 GreyMatters: Should EPF rate be cut to stimulate the economy? 12 Nathan’s related party transaction in Eversendai raises questions 39 Lifting the Fog: The race towards infrastructural sustainability 14 TA Enterprise’s offer for TA Global deemed too low 40 AirAsia-Airbus deals in spotlight amid RM205 mil 15 Up to RM200 mil more for Guan Eng’s ‘iconic’ pylons bribe probe 16 The political dimensions of AirAsia 40 Past controversies around Fernandes, Kamarudin 18-20 FocusList: Slight increase in wealth seen 41 Cronyism, patronage concerns in Mahathir’s Malaysia Inc 2.0 34 22-24 Conversations, former Health Minister Dr Dzulkefly Ahmad: Pursuing sustainable healthcare reforms 42 We cannot control share price movements, says C&C (interview was done before the political crisis) Bintang CEO 26 Poh Kong benefits from gold as a safe haven asset 43 Confusion over container deposits collection 28 Waiting game looms for AirAsia shareholders 44 How has the Covid-19 eroded consumer confidence? 29 PDP for RM46 bil Penang Transport Master Plan might be delayed Property 30-31 Is 2020 a good year to buy a house? 29 Lifting the Fog: Gig economy or full-time jobs? 32-33 PKNS primed for RM26 bil launches over next five to 37 OPR cut to have marginal impact on banks’ 10 years profitability 39 GET YOUR MONTHLY PRINT COPY OF FOCUS MALAYSIA DELIVERED TO YOUR DOORSTEP FOR ONLY RM88 PER YEAR To subscribe online, please visit www.focusmalaysia.my or call 03-7710 3883/7710 3882 E-mail: [email protected] Print subscription available at Klang Valley, Penang & Ipoh only. March 2020 | FocusM contents 3 Happenings 2 For crustacean lovers Celebrating 30 years with a Kurosawa classic Electrifying lineup at Wired Music Week Illuminating music festival 59 in Sarawak Beauty 4 Caring for the body Sephora Fahrenheit 88 is a hub for personalisation Repairs and strengthens your skin Fashion 6 Military style for modern explorers Nike at its most futuristic 63 Versatility and elegance A fresh restart for Pedro 8-9 Cover Story 34-35 Eight things to watch out for in Malaysia’s rental 55 QuestionTime: A temporary reprieve from rising car 8-9 Life as a humorist market in 2020 prices Lifestyle 36 Schedule of Parcels and ‘SiFUS’ to achieve the 56 Regulate vaping rationally 10 The way he made ultimate goal us feel 57 Lifting the Fog: When everyone wants to be THE Flexible meeting auto hub Columns packages From ordinary 45 QuestionTime: PAS sets a trap for Mahathir 57 Wake-up call for the Chinese and will Jho Low be back? to ‘goddess’ 58 Global economy still slowing, dangerously vulnerable 46 QuestionTime: Why is a PDP for RM46 bil PTMP OK? 11 Eye on the big picture 46 PDP accord might be delayed as state govt works to Scream your smooth out issues Markets heart out 59 Shadow economy – Why does it matter? 47 Facing the challenging arithmetic of climate action Gourmet 12 Nyonya nosh at 48 Fantasy fiscal policy 60 Covid-19: How much economic pain can Malaysia endure? its best 49 Intellectual property raises costs of living The pinnacle of winemaking 50 Promoting export-led growth with exchange rate Enterprise 13 When art meets undervaluation whisky 61 MYTHEO for investors to get started 51 Plantations and advances in technology Stay 52 Breach of confidence: The public interest defence Income+ 14 Where the world comes together 53 Cleaning up corruption in Malaysia 62 Credit card users need to be aware of charges on top of interest 54 Fancy a foreign trademark? Now it’s cheaper 63 E-wallets: Boon or bane? EDITORIAL ADVERTISING CUSTOMER HOTLINES Editor-in-Chief: P Gunasegaram Sales Director: Pearly Ng (012) 201 2139 Tel: 603-7710 3883 Executive Editors: Amie Ong, Doreenn Leong Sales Support Executive: Parimala Devi (012) 242 4122 Fax: 603-7710 3882 Senior Writers: Emmanuel Samarathisa, Ranjit Singh Account Manager: Aznul Faizal Ahmad (019) 395 3552 Writers: Xavier Kong, Sharina Ahmad, Chee Jo-Ey Editorial: Ext 106 Sub- Editor: Geraldine Tan Email: [email protected] EVENTS & MARKETING Senior Designers: Eugnice Han, Quek Chun Leng Advertising: Ext 107 12 Sales Director: Jasmine Cheng (017) 271 7722 Designer: Purvinn Raj Chai Email: [email protected] Photographer: Iqbal Ismail Senior Manager: Terry Chong (012) 708 6833 Account Manager: Matthew Foo (012) 480 3141 Circulation: Ext 122 Email: [email protected] CORPORATE Subscription: Ext 122 & 101 CIRCULATION & PRODUCTION Executive Director, Business Development: Email: [email protected] Christopher Ang Manager: Kanna Matthew (012) 507 0750 Executive: Silas Emmanuel (014) 640 4733 Focus Malaysia is published by: Milan Integrasi Sdn Bhd (1251956-w) Unit 6.13, Level 6, 1Tech Park, Jalan Tanjung Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan. 13 4 mainstream FocusM | March 2020 by Emmanuel Petronas’ FY19 net profit Samarathisa ational oil company Petroliam Nasional down 27% to RM40.5 bil Bhd (Petronas) posted a 27% lower net profit of RM40.5 bil for the Nfinancial year ended Dec 31, 2019 included an RM30 bil special challenges, Petronas remains (FY19), compared to RM55.3 bil dividend, to the government. focused on delivering operational last year. According to Petronas, the excellence and remains commit- Softer earnings came on the company was able to sustain ted to our three-pronged strategy back of “lower revenue as well healthy levels of cash flow from of maximising cash generation, as net impairment on assets operations as well as free cash expanding core business, and amounting to RM7.3 bil,” the flows, “despite the softer results.” stepping out into new ventures,” company said in a Feb 26 state- Operating cash flow increased to he added. ment. But “these were partially RM90.8 bil from RM86.3 bil, while This year, Petronas is esti- offset by lower tax expenses.” free cash flow rose 9% to RM43 bil mating an increase in Malaysian Petronas registered RM240.3 from RM39.4 bil. production by about 5%, as it bil in revenue for FY19 or 4% In terms of margins and oper- raises its domestic capital ex- lower than the RM251 bil for the ating cash flow, Petronas claims Wan Zulkiflee says Petronas Tengku Muhammad Taufik says penditure (capex) allocation to previous financial year, “mainly to have outperformed its global will pay RM24 bil in dividends 2020 will be a tough year for the between RM26 bil and RM28 bil due to lower average realised peers. According to the company, to govt this year national oil company this year. The emphasis will be on prices for major products.” its profit-after-tax margin stood upstream projects, the company The company said the drop at 17% in 2019 against under 10% said. was “partially offset by the impact for international oil majors, swan event,” Wan Zulkiflee financial officer Tengku It is also maintaining its of higher sales volume, mainly for while cash flow from operations said that while the whole Muhammad Taufik Tengku Aziz overall capex estimate at RM50 petroleum products and LNG, expanded to 38% of total revenue, industry was not prepared for also said this year would be a tough bil for 2020. It spent RM47.8 bil coupled with the effect of the which the company says puts it the outbreak of the virus, “this one. He cited the ongoing geopolit- in capex last year, up from RM46.9 weakening of the ringgit against far ahead of industry peers. is not the first time that we ical uncertainties, prolonged trade bil in 2018. Petronas would be also the US dollar.” Moving forward, the company go through this kind of price tensions and near-term demand allocating 5% or around RM2.5 bil Meanwhile, Petronas pres- expects the outlook to “remain volatility. What is important for disruptions mainly due to the for renewable energy ventures. ident and CEO Tan Sri Wan uncertain” this year with Petronas is to have a resilient Covid-19 epidemic. The oil company last year Zulkiflee Wan Ariffin told a press “headwinds from the impact of business model which can “The board expects that the launched its own rooftop solar conference that the company Covid-19, coupled with weak- handle these headwinds,” he financial performance for the solution in the country, a result of would pay RM24 bil in dividends er-than-expected demand and said.