INARI AMERTRON TO RAISE RM1.07 BIL VIA SHARE PLACEMENT FOR MEGA DEAL? p10 FRIDAY, MAY 7, 2021 www.theedgemarkets.com ISSUE 181/2021 CEOMorningBrief HOME: Maybank says it has made provisions for variables like MCO 3.0 p6 Mitsui weighing buyout of RM49b IHH Healthcare — sources p7 Nazir Razak: Why no supertaxes on glove companies? p8 WORLD: US support for vaccine patent waiver shifts to WTO debate p16 BNM keeps OPR pat at 1.75%; economists expect rate to stay through 2021 Report on Page 3. ªBegin your journey with Priorty Bankingº Sign up today and receive up to RM cash reward. Scan to apply Scan for full T&C Standard Chartered Bank Malaysia Berhad 198401003274 | Standard Chartered Saadiq Berhad 200801022118 FRIDAY MAY 7, 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. 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Lam Jian Wyn Level 3, Menara KLK, 1 Jalan PJU 7/6, TO GET ON EMAILING LIST Mutiara Damansara, 47810, Petaling Jaya, TO CONTACT EDITORS: [email protected] [email protected] Selangor, Malaysia TO ADVERTISE: [email protected] HOME Covid-19: Malaysia’s coronavirus curve showing nascent signs of upward climb Malaysia reports 6000 Daily new cases 7-day moving average 5000 3,551 new cases 4000 3,551 as daily cases stay 3000 3,286 above 3,000 for 2000 third straight day 1000 0 Sept 1, 2020 May 6, 2021 BY EMIR ZAINUL theedgemarkets.com KUALA LUMPUR (May 6): Malaysia SUHAIMI YUSUF/THE EDGE ber of clusters recorded so far to 1,740. today recorded a total of 3,551 new Cov- Meanwhile, seven clusters were declared id-19 cases, pushing the cumulative figure over today while current active clusters of positive cases in the country to 427,927, stand at 418. according to Ministry of Health (MoH) He said eight of the 14 new clusters director-general Tan Sri Dr Noor Hisham were linked to workplaces, two involved Abdullah. community infections, and another two This is the third consecutive day that were identified in education institutions, the country has recorded new Covid-19 while one involved high-risk groups and daily cases above 3,000 since Tuesday. another one involved a place of worship. Of the new cases, the highest number of infections was in Selangor with 1,137 cases, followed by Kuala Lumpur (477), Read also: Sarawak (391) and Kelantan (326). Meanwhile, active cases — which now EMCO in 16 localities in Sg Ruan, seven stand at 33,762 – have remained above the in Sempalit, Pahang from May 8-21 30,000-mark for the fifth consecutive day Click here since it breached the level on Sunday. The high number of active cases is straining Sports, recreational activities in MCO the country’s healthcare system. sia has noticeably recorded double-dig- areas temporarily suspended Click here Daily recoveries, on the other hand, it deaths consecutively for the last 13 remained below the number of new in- days. Distributive trade sector to operate as fections at 2,709, bringing total cumula- The deaths reported today involved usual during MCO Click here tive recoveries to 392,555, or a recovery five cases in Sarawak, three each in Johor rate of 91.7%. and Selangor, two each in Kelantan and CMCO: Sabah to ban inter-district travel In a statement today, Noor Hisham said Kuala Lumpur, as well as one case each from next Monday till May 16 Click here the current active cases included 354 pa- in Kedah, Negeri Sembilan, Pahang and tients who are being treated at intensive Terengganu. Ministry identifies bazaars, malls visited care units. Out of the 354 Covid-19 pa- by Covid-19 positive individuals, close tients, 199 of them requires breathing as- MoH identifies 14 new Covid-19 contacts Click here sistance through ventilators. infection clusters There were 19 coronavirus-related Noor Hisham further said that the Minis- 2,448 private facilities registered as deaths today, as the country’s death toll try has identified 14 new Covid-19 infec- vaccination centres, 299 ready for rose to 1,610. Including today, Malay- tion clusters today, pushing the total num- operation Click here FRIDAY MAY 7, 2021 3 THEEDGE CEO MORNING BRIEF HOME BNM keeps OPR pat at 1.75%; economists expect rate to stay through 2021 KUALA LUMPUR (May 7): Bank Nega- BY JUSTIN LIM measures to curb Covid-19 resurgences. ra Malaysia kept the overnight policy rate theedgemarkets.com “The balance of risks to the growth (OPR) pat at its historic low of 1.75% after outlook remains tilted to the downside, its Monetary Policy Committee meeting due mainly to uncertainty over the path yesterday (Thursday, May 6), and econ- of the pandemic, as well as potential risks omists are expecting this rate to be kept of heightened financial market volatility,” steady throughout 2021, despite the rein- it said. troduction of the movement control order In terms of Malaysia’s headline infla- or MCO 3.0 in targeted areas, which is tion, BNM projected it to average higher seen as a short-term blip to the recovery at between 2.5% and 4%, primarily due of the domestic economy. to the cost-push factor of higher global “In our view, the central bank is looking oil prices. “In terms of trajectory, head- at the improvements in economic activity line inflation is anticipated to temporar- in the US and extrapolating that this chan- ily spike in the second quarter of 2021, nel will lift Malaysia’s external sector and due particularly to a lower base from low will be followed by income effects filter- domestic retail fuel prices in the corre- ing through the domestic economy,” said sponding quarter of 2020. However, this RHB Research senior economist Nazmi will be transitory as headline inflation is Idrus in a note yesterday. ed. A Reuters poll of 13 economists saw all projected to moderate thereafter, as this And Malaysia’s March industrial pro- expecting BNM to keep the OPR steady base effect dissipates,” it said. duction (IPI) data, released a few hours to help support the economy’s recovery, Nonetheless, the underlying inflation, as before the BNM’s announcement, also as coronavirus cases rise, even as it had measured by core inflation, is expected to showed strong improvement in both do- benefited from strong external demand. remain subdued, averaging between 0.5% mestic and export oriented segments, not- In announcing the unchanged OPR, the and 1.5% for the year, amid continued ed Nazmi, referring to the 9.3% year-on- BNM noted that global economies continued spare capacity in the economy. year surge in the March IPI – the highest to strengthen, including Malaysia’s. It also seen since July 2013 – driven by the man- said the domestic economy’s growth trajecto- Fiscal policy now seen as the main tool ufacturing and electricity components’ in- ry is projected to improve, driven by a strong- to support growth crease. The March factory output growth er recovery in global demand and increased Meanwhile, RHB’s Nazmi is of the opinion also beat Bloomberg’s consensus estimate of public- and private-sector expenditure, amid that the fiscal policy will be the main tool to 8.7% and February’s 1.5% growth. continued support from policy measures. support economic growth, in case any down- Hence, Nazmi, who expects the MCO “Growth will also be supported by high- side risks emerge, rather than monetary policy. 3.0 to have a less severe impact on the econ- er production from existing and new man- “The government has enough room omy compared to the previous two MCOs, ufacturing facilities, particularly in the E&E to invoke further counter-cyclical fiscal is of the view that the central bank will look (electrical and electronics) and primary-re- measures. Our analysis of the progress of past the short-term downside risks that lated sub-sectors, as well as oil and gas fa- fiscal measures (for example wage subsidy MCO 3.0 presents and focus on the econ- cilities,” it said, adding that the progress of programme, hiring incentive programme, omy’s recovery in the second half of the year. the domestic Covid-19 vaccine programme extended employment insurance system Concurring with Nazmi’ view that the will also lift sentiments and contribute to- [EIS] payouts, etc) have shown that the OPR will be kept unchanged this year is wards recovery in economic activity. disbursements have been much lesser, rel- MIDF Research, who attributed this to While noting that the global economic ative to the allocation,” he noted. optimism that an economic recovery is recovery has continued to strengthen, par- Given the unused funds, he said the already taking hold in Malaysia and that ticularly in major economies – supported government has room to implement fur- the current rate remains accommodative by improvements in manufacturing and ther counter-cyclical fiscal measures to to support its economic recovery. trade activity – it forecast that the ongo- support consumer spending and the small “At the moment, we do not foresee any ing roll-out of vaccination programmes and medium enterprises (SMEs). “In a need for further easing in the monetary policy and sizeable fiscal stimulus measures in worst-case scenario, the recent government but BNM has the room to cut OPR if the eco- the US, as well as policy support in other access into the Kumpulan Wang Amanah nomic condition deteriorates significantly,” major economies, will further facilitate an Negara (KWAN) fund, could provide it the research house wrote in a separate note.