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Minetech Secures RM230 Million Contract Renewal For Selinsing Gold Mine Project

Minetech Resources Berhad’s (Minetech) subsidiary Minetech Construction Sdn Bhd (MCSB) has successfully extended the contract valued at estimated RM230 million for waste removal, ore delivery, and associated works for the Selinsing Gold Mine Project.

In a statement, civil engineering specialist, bituminous products manufacturer as well as an emerging solar player said the contract was renewed by Able Return Sdn Bhd and Damar Consolidated Exploration Sdn Bhd.

This renewal extends the partnership for an additional 36 months, starting from 1 January 2024 to 31 December 2026.

Minetech executive chairman Abang Abdillah Izzarim expressed his enthusiasm about the extension saying the contract with Able Return and Damar Consolidated is a significant milestone for Minetech.

“It not only reaffirms our leading position in the industry but also aligns with our strategic vision for growth and excellence.

“We are committed to leveraging our expertise and capabilities to further contribute to the success of the Selinsing Gold Mine Project, ensuring value creation for all stakeholders involved,” said Abang Abdillah.

Nestled in Malaysia’s Central Gold Belt, the Selinsing Gold Mine spans 150.3 sq km, encompassing the Selinsing, Buffalo Reef, Felda Land, Peranggih, and Famehub properties, located 158km north of Kuala Lumpur.

The mine boasts a gold processing plant and essential infrastructure, readily accessible from all properties.

Minetech said it is important to note that the Selinsing Gold Mine’s operations and the extended contract align with its commitment to environmental, social, and governance (ESG) principles

“This alignment underscores the company’s dedication to sustainable mining practices, community engagement, and governance standards that not only ensure compliance but also aim to positively impact the surrounding environment,” it added.

As at Jan 31, at 5.30pm, the share price of Minetech closed at RM0.145, signifying a market capitalisation of RM258.7 million.

RE Developer Ditrolic Energy Secures Investment From BlackRock’s CFP

RE developer Ditrolic Energy Holdings Sdn Bhd (Ditrolic Energy) has secured investment backing fromglobal asset management company BlackRock’s Climate Finance Partnership (CFP), its flagship public-private finance vehicle.

According to Ditrolic Energy, the partnership secured US$673 million (RM3.1 billion) in commitments from a global consortium of investors to back its expansion to build solar assets throughout emerging markets in Asia Pacific.

“The investors include governments, philanthropies, and institutional investors in an oversubscribed final fundraise, exceeding the initial target of US$500 million (RM2.37 billion),” it said in a statement today (Jan 31).

The company said with both parties had entered into an agreement in which CFP will financially back Ditrolic Energy’s expansion to build commercial and industrial (C&I) and utility-scale solar assets.

“The assets include targeted 1 GW and pipeline of solar projects and increasing its targeted total capacity to 5GW and pipeline of solar projects in Malaysia, Bangladesh, Indonesia and the Philippines.

“(Besides that, the backing will be used for) the investment and expansion of its flagship 360° Clean Energy Solution, EnerLoop, by enabling technology for carbon tracking, battery energy storage system and green electricity sales,” it added.

CFP is a unique partnership among BlackRock and the governments of France (AfD), Germany (KFW) and Japan (JBIC) through their respective development finance institutions, as well as leading US impact organizations.

With this new partnership, Ditrolic Energy said it intends to make Malaysia its investment hub to actively invest into key energy transition projects around its approved markets in the Asia Pacific region including Malaysia’s National Energy Transition Roadmap (NETR) programme.

“We plan to mobilise significant amounts of capital private investment with the aim to accelerate and reduce the associated cost of energy transition for the country.

Ditrolic Energy is one of the largest renewable energy developers in Malaysia and Southeast Asia with more than 450MW of solar assets.

With CFP’s partnership, Ditrolic Energy takes position as one of the leading pure-play energy transition companies in the country.

Ditrolic Energy founder and group chief executive officer Tham Chee Aun said the company is committed to playing a key role in Asia’s energy transition.

“We are grateful for BlackRock’s support, because the investment in Ditrolic Energy enables us to rapidly increase scale and maximise value to support transition to low carbon economies throughout multiple markets.

“With the capital raised and private investment to be mobilised, the company would be in a prime position to undertake key energy transition projects in Malaysia and other Southeast Asia countries,” he said.

BlackRock’s Climate Infrastructure APAC co-head Valerie Speth said Ditrolic Energy holds a proven solar development track record in this diverse region.

“Our partnership presents an attractive opportunity to mobilise more capital into climate infrastructure in emerging markets and accelerate
national ambitions to achieve net zero economies,” Speth said.

BlackRock currently manages over US$50 billion (RM236.5 biilion) of infrastructure client assets under management (AUM) is comprised of
infrastructure equity, debt and solutions.

According to Ditriolic Energy, Asia Pacific accounts for 40% of the world’s carbon emissions and countries including Malaysia, Bangladesh, Indonesia and the Philippines have strong power market fundamentals and increasingly pro-renewable regulatory regimes.

“The partnership announced today aims to bring about more development, as well as construction of greenfield renewables capacity to support growth in emerging markets,” the company said.

Malaysia, for example, has a renewable energy generation goal stands at 31% by 2025 and 70% by 2050 under the new National Energy Transition Roadmap (NETR), with an intention to achieve net zero emissions by 2050.

The nation’s domestic oil and gas reserves are expected to be depleted by 2029, driving up importation of fossil fuels for power generation, while raising electricity tariffs.

Meanwhile, Indonesia plans to achieve 23% of renewables in its electricity mix by 2025, and at least 31% by 2050, according to its Electric Supply Business Plan and the Philippines is aiming for 3.6GW of capacity allocated to commercial operation in both 2024 and 2025, rising to 4.4GW in 2026.

Outside of Southeast Asia, Bangladesh is expected to reach 30% renewable generation capacity by 2030 and is pivoting towards gas, LNG and renewables, with the aim of generating an additional 2.7GW of renewable energy, and this could contribute to about 10% of the new-build pipeline on a capacity basis.

MAHB Hits Milestone With Over 100 Million Passenger Movement In 2023

MAHB hit a new milestones in 2023 as its network of airports’ total passenger movements surpassed the 100 million passenger mark for the first time since 2020. The 119.5million total passenger movements it said was partly driven by the increase in travellers’ confidence and air travel demand, approval of more slots at other international airports, reactivation of more aircraft, new aircraft delivery and the anticipated China’s reopening of borders on 8 January 2023.

The airport operator added the airports in Malaysia traffic recovery continued to record a significant increase of 55.4% over 2022 with 81.9million total passenger movements in 2023. The year recorded notable increase in the international sector with the last quarter recording trends similar to 2019 registering more than 50% of traffic market share. In addition, December international passengers recorded 4 million passengers for the first time since February. The encouraging traffic recovery was mainly driven by the reopening of China borders, increase in airlines seat capacity with the reactivation of aircraft and new deliveries. 6 new airlines and 7 airlines resumed services to 20 city pairs and 7 countries in 2023 with the highest traffic to Indonesia, China, South Korea, and the Middle East.

There were 72 airlines (excluding full freighters) operating to all airports managed by Malaysia Airports to 113 international and 34 domestic destinations compared to 66 airlines operating at all airports managed by Malaysia Airports to 86 international and 35 domestic destinations in 2022. The average load factor recorded in 2023 was 77.2%, an increase of 5.9 percentage points compared to 2022, with December 2023 having the highest average load factor for both international and domestic sectors at 80.0%.

However, the Istanbul SGIA not only exceeded 2019 total passenger movements, the 37.6million passengers for the year was also a record high, an increase of 4.5% over 2019 passengers. International passenger movements surpassed 2019 levels with a double-digit growth of 37.5% growth over 2019 registering 19.6million passengers, while the domestic passenger movements recorded 18.0million passengers, reaching 82.8% of 2019 levels. For the first time, international traffic share reached more than 50% over the airport’s total passengers.
Conclusion

The Malaysian Aviation Commission’s (MAVCOM) Waypoint Report issued in December 2023 forecasted passenger movements for 2024 to grow between 93.9million to 107.1million passengers, an increase of 10.0% to 25.0% over 2023. The latest airlines’ seat capacity filing for 2024 shows an increase of 13% over 2022, with the visa-free entry for Chinese and Indian passengers would provide the boost for traffic to recover in particular from the Northeast Asia Region.

Inari Emerton Appoints Former OCBC’s CEO Ong Eng Bin As Director

Inari Amerton Bhd appointed Datuk Ong Eng Bin as its new independent and non-executive director effective today (Jan 31).

In a Bursa filing today (Jan 31), the outsourced semiconductor assembly and test (OSAT) service provider said currently, Ong, 60, serves as an independent and non-executive directors of Paramount Corporation Berhad, Oriental Holdings Berhad and STF Resources Sdn Bhd.

“He is also a non-executive director at Asian Banking School and an Asian Institute of Chartered Bankers council member.”

Ong began his career at Pricewaterhouse Malaysia (now known as PricewaterhouseCoopers Malaysia) in 1986.

After he left PricewaterhouseCoopers Malaysia, Ong had an impressive career of 35 years at OCBC Bank (Malaysia) Berhad (OCBC) where he rose through the ranks from corporate banking officer in 1988 to several leadership roles in different divisions of the bank.

“(This include) as chief executive officer (CEO) for 8 years from August 2014 until his retirement in December 2022.

“During his tenure as CEO of OCBC, he was also the chairman of Pac Lease Bhd and e2 Power Sdn Bhd as well as Association of Banks in Malaysia council member. He was an OCBC adviser to chairman until 30 June 2023,” the group added.

MSM Chief Financial Officer To Resume Duties

MSM Chief Financial Officer, Dr Maaztul aini Shahar Abdul Malek who was put on garden leave to assist in investigation has no been reinstated back to her duties.

The group made the announcements today and referred its earlier notices filed on 3 November 2023, 8 December 2023 and 15 January 2024. The latest being on January 15 when it said the leave will be extended to February 15.

MSM Malaysia Holdings Bhd has extended the garden leave of chief financial officer Dr Mazatul ‘aini Shahar Abdul Malek Shahar, who was forced to take leave for an undisclosed reason, for the second time until 15 February 2024.

Malayan Sugar Mills had announced the first extension for the garden leave on December 8, last year, for one month from 15 December 2023 to 15 January 2024, pending further notice from the Board.

On Nov 3, the group announced that the CFO will be on garden leave with effect from Oct 20, 2023 until Dec 15, 2023 or until further notice from the board.

In a filing then it said Mazatul ‘Aini Shahar’s temporary leave of absence is necessary to facilitate with an ongoing internal investigation.

However, when asked by BusinessToday, MSM said the leave is a human resource related issue that will be resolved within the company, without specifying the reason for the leave.

The Board of Directors today said the garden leave of the Chief Financial Officer of MSM has been lifted. The CFO shall resume her duties as the CFO effective from 1 February 2024.

Bursa Malaysia’s Jan 31, 2024 Top Gainers And Losers

Decliners led advancers 635 to 401 on the broader market, while 427 counters were unchanged, 799 untraded, and 52 others suspended.

Top Gainers

NOSTOCK NAMESTOCK CODELAST DONECHGVOL (’00)
1TENAGA [S]534710.720+0.24077,013
2ALLIANZ-PA1163PA19.620+0.2204
3PETDAG [S]568121.340+0.1804,802
4MCEHLDG-WA [S]7004WA1.140+0.17012,584
5DAYANG [S]51412.050+0.160248,321

Top Losers

NOSTOCK NAMESTOCK CODELAST DONECHGVOL (’00)
1MPI [S]386727.000-1.0001,561
2HEIM325524.100-0.6401,699
3KSENG34765.670-0.2703,227
4PENTA [S]71604.040-0.22034,380
5F&N [S]368927.700-0.2001,128

Source: Bursa Malaysia

Bursa Closes Mixed Ahead Of US Fed Rate Decision

Bursa Malaysia’s key index was little changed while the broader market ended mixed on Wednesday, amid cautious sentiment prevailing across the region ahead of the US Federal Reserve’s (Fed) decision on interest rate later in the day, said a dealer.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) inched up 0.23 of a point to end at 1, 512.98 from Tuesday’s (Jan 30) close of 1,512.75.

The barometer index opened 0.15 of a point easier at 1,512.6 and moved between 1,509.55 and 1,516.4 throughout the day.

Decliners led advancers 635 to 401 on the broader market, while 427 counters were unchanged, 799 untraded, and 52 others suspended.

Turnover declined to 3.67 billion units valued at RM2.86 billion from 3.78 billion units worth RM2.64 billion on Tuesday, Bernama reported.

Foreign Exchange Rates Jan 31, 2024

The closing Foreign Exchange rates (from Maybank) as at 5pm, Jan 31 are as presented below:

CurrencyBank sell
TT/OD
Bank buy
(TT)
Bank buy
OD
1 US DOLLAR4.79404.66004.6500
1 AUSTRALIAN DOLLAR3.16603.04103.0250
1 BRUNEI DOLLAR3.58003.47803.4700
1 CANADIAN DOLLAR3.57703.48203.4700
1 EURO5.21105.04305.0230
1 NEW ZEALAND DOLLAR2.95502.84702.8310
1 P NEW GUINEA KINAN/AN/AN/A
1 SINGAPORE DOLLAR3.58003.47803.4700
1 POUND STERLING6.08905.90005.8800
1 SWISS FRANC5.54405.41705.4020
100 BANGLADESH TAKA4.45404.16403.9640
100 DANISH KRONER71.660065.960065.7600
100 HONGKONG DOLLAR62.030058.960058.7600
100 INDIAN RUPEE5.87005.51005.3100
100 INDONESIAN RUPIAH0.03150.02850.0235
100 JAPANESE YEN3.25403.15203.1420
100 NORWEGIAN KRONER47.200043.430043.2300
100 PAKISTAN RUPEE1.75001.63001.4300
100 PHILIPPINES PESO8.64008.14007.9400
100 SAUDI ARABIAN RIYAL129.3700122.8100122.6100
100 SOUTH AFRICAN RAND26.480023.920023.7200
100 SRI LANKA RUPEE1.55001.43001.2300
100 SWEDISH KRONER47.570043.330043.1300
100 THAILAND BAHT14.180012.580012.1800
100 ARAB EMIRATES DIRHAM132.1600125.3300125.1300
100 QATAR RIYAL133.0800126.3400126.1400
100 NEW TAIWAN DOLLAR16.5000N/AN/A
100 CHINESE RENMINBI66.900064.3000N/A

Petroleum Products Retail Prices Remain Unchanged From 1 Feb 2024 To 7 Feb 2024

A statement released by the Ministry of Finance today (Jan 31) said based on the weekly retail pricing of petroleum products using the Automatic Pricing Mechanism (APM) formula, the retail prices of petroleum products from 1 February 2024 to 7 February 2024 are fixed as follows:

(i) the retail price of RON97 remains unchanged at RM3.47 per litre;

(ii) the retail price of RON95 petrol remains unchanged at RM2.05 per litre; and

(iii) the retail price of diesel remains unchanged at RM2.15 per litre.

To protect the consumers from the increase of global oil price, the Government will maintain the ceiling price of RON95 at RM2.05 per litre and diesel at RM2.15 per litre, even though the market price for both products has increased beyond the current ceiling price.

The Government will continue to monitor the trends of global crude oil prices and take appropriate measures to ensure the continued welfare and well-being of the people.

Mah Sing Expands Industrial Footprint With RM2 Billion Development In Sepang

Mah Sing Group Berhad is set to bolster Malaysia’s industrial landscape with the acquisition of 561.65 acres of prime industrial land in Sepang. The development, named Mah Sing Business Park, Sepang, is estimated to have a gross development value (GDV) of up to RM2 billion, marking a significant stride in the country’s industrial growth.

The first phase of the development comprises 185 acres, known as Mah Sing Business Park, which alone is expected to yield an approximate GDV of RM728 million. Fusion Heights Development Sdn Bhd, a subsidiary of Mah Sing South Sea Industrial Development Sdn Bhd, will spearhead the project, with an option to acquire an additional 376.65 acres in the future.

The strategic investment structure involved an initial 10% downpayment, with the remaining 90% payable three months after the completion of conditions precedent. The landowner, Premier Land Resources Sdn Bhd, grants the option for further acquisition within four years of the Sale and Purchase Agreement.

Crucially, the landowner will also become a 20% shareholder in Fusion Heights Development, fostering credibility and confidence in the success of Mah Sing Business Park. This unique investment model mitigates risk, provides growth opportunities, and aligns with Mah Sing’s commitment to sustainable development.

Mah Sing Business Park, Sepang, is envisioned as a world-class industrial hub, encompassing customised factories, industrial lots, cluster, semi-D, and detached factories. The development aims to attract businesses from high-tech manufacturing and value creation sectors, contributing to Malaysia’s industrial prowess.

The location boasts excellent connectivity, situated just 10km from Kuala Lumpur International Airport (KLIA). This strategic position facilitates logistics flexibility, cost optimisation, and easy access to international markets. Additionally, the development aligns with the Integrated Development Region in South Selangor (IDRISS), a key initiative under the First Selangor Plan 2021-2025, with an estimated GDV of RM1 trillion.

Mah Sing’s Chairman, Tan Sri Dato’ Sri Leong Hoy Kum, emphasised the strategic timing of the acquisition, aligning with Malaysia’s New Industrial Master Plan (NIMP) 2030. The NIMP focuses on transforming industrial estates into eco-industrial parks, aligning seamlessly with Mah Sing’s commitment to creating sustainable and customized industrial spaces.

The acquisition strengthens Mah Sing’s position in Malaysia’s industrial property market, tapping into the country’s proactive policies to attract foreign direct investment (FDI). With a track record of attracting international investors, Mah Sing’s foray into Sepang presents a prime investment opportunity, especially within Malaysia’s flourishing industrial landscape.

As Malaysia positions itself as a preferred destination for enterprises seeking efficient investments, Mah Sing Business Park, Sepang, emerges as a flagship development contributing to the nation’s industrial growth.

Subject to authorities’ approval, the development is slated to commence in the second half of 2024, spanning a 3 to 4-year timeline. The acquisition increased Mah Sing’s prime landbanks to 2,471 acres, with a total remaining GDV and unbilled sales of RM27.56 billion. The company’s industrial development portfolio continues to grow, underlining its commitment to shaping Malaysia’s industrial future.

Mah Sing anticipated the Mah Sing Business Park, Sepang, to not only contribute to its growth and earnings prospects but also position itself as a leader in providing holistic solutions for investors seeking to establish manufacturing facilities in Malaysia.

The project, guided by innovative strategies and collaboration, is poised to become a cornerstone in Malaysia’s industrial development journey.

Understanding women’s labour force trend in Malaysia

By Norfariza Hanim Kasim; Muhammad Hazim Mohd Abd Rahim, Population & Demographic Statistics Division, Department of Statistics Malaysia

A quantitative overview of Malaysia’s progress towards gender equality can be obtained from statistical patterns, including women’s representation in labour force involvement. Gender equality appears to gain momentum as seen by positive indications such as the growing number of women obtaining higher education and occupying important jobs.

However, the story of women’s empowerment goes beyond numbers and percentages as it also includes women’s tenacity and fi ghting for equal rights for men and women. Investigating these stories in detail is necessary to understand women’s empowerment of labour force in Malaysia.

POPULATION IN MALAYSIA

According the statistics from Department of Statistics Malaysia, the total population of Malaysia including Noncitizens in 2023 was estimated at 33.4 million which 17.5 million comprised of males and 15.9 million were females. As of 2023, Malaysia’s demographic composition highlights the signifi cant role of females across distinct age ranges. The female population aged 15-64 years (working age) comprised of 11.0 million, 69.0 per cent of the total female population. Male population aged in the same age group comprised of 12.4 million (70.9%) from the total male population.

In the 0-14 years age group, young females constitute 23.0 per cent of the females population, with 3.7 million individuals contributing to the younger generation. Transitioning to the crucial 15-64 years age range, which represents the core working-age population, females make up at 69.0 per cent, with 11.0 million women. For the 65 years and over category, females account for 8.0 per cent of the population, totalling 1.3 million women.

FEMALE LABOUR FORCE TRANSFORMATION

  1. Labour Force Participation Rate Increased from 1982
    Labour force participation rate over four decades in Malaysia shows a transformation in the proportion of women working in the country. Female labour participation rate stood at 44.5 per cent in 1982, but by 2022, the percentage had increased to about 55.8 per cent (Chart 1a). This evolution is a refl ection of shifting public perceptions as well as the results of national programmes meant to integrate women into the economy.
  1. Women’s Labour Force Participation Rate Peaked at the Age of 25-29
    For both males and females, the labour force participation rate tends to be higher for younger age groups and gradually decreases as people get older. This pattern is common in many countries, as younger individuals are typically more likely to be in the workforce or actively seeking employment, while older individuals may transition to retirement or other activities. Among males, the highest participation rate is in the 40-44 age group at 98.4%. The participation rate remains relatively high for men until the 55-59 age group, where it starts to decline drastically. Among females, the highest participation rate is in the 25-29 age group at 77.5%. Unlike males, the female participation rate decreases as age increases, and it drops more steeply for the 55-59 and 60-64 age groups.

    Chart 1b highlights age-related and gender-based diff erences in labour force participation rates in Malaysia in 2022. While younger age groups generally have higher participation rates, there are signifi cant disparities between males and females across all age groups, with males having higher rates of labour force participation. Gender disparities in the labour market remain an important aspect of labour force dynamics that policymakers may need to address to promote greater gender equality in the labour force.
  1. Labour Force Participation Rate Across Urban and Rural Landscapes
    In both urban and rural areas, male participation rates are consistently higher than female participation rates across all age groups. This indicates a gender disparity in workforce participation, with males having higher rates. The largest gender gap can be seen in rural areas, especially in the older age group, where male participation is signifi cantly higher than female participation. Females generally have lower participation rates, and the rates tend to decline with age for both urban and rural areas.

    These data shows that there are notable diff erences in labour force participation rates based on age, gender, and urban/rural settings in Malaysia in 2022. Urban areas generally have higher participation rates than rural areas, and males tend to have higher participation rates than females across the board (Chart 1c).
  1. Female Labour Force Participation by Occupation
    Based on the occupational category, from 2015 to 2022, the share of female employed persons in the services and sales workers category increased from year to year (2015: 29.5%; 2022: 33.3%) followed by clerical support workers (2015: 16.6%; 2022: 17.5%) and professional categories (2015: 15.3%; 2022: 17.2%). The increasing trend of female employment in services and sales workers category can also be observed in various countries, with the share of female workers in this category often exceeds 50.0 per cent in some industries, such as entertainment providers and administrative and support services. The share of female employed persons in services and sales workers category has been consistently higher than male.
  2. The Reason For Not Seeking Work
    The population outside labour force consists of individuals who are neither employed nor unemployed. The top reason for female being outside the labour force was housework and family responsibilities, accounting for 62.9 percent of the female population. On the other hand, the primary reason for men was schooling, with 63.5 percent of the male population being outside labour force due to education commitments. These statistics highlight the diverse factors infl uencing the labour force participation of diff erent genders with domestic responsibilities and education being the main reasons for female and male, respectively.
  3. The Female Labour Force and Gender Equality in Malaysia
    Labour force participation rate among females was 55.8 per cent, way far below males at 81.9 per cent. This gender gap in labour force participation is a signifi cant issue as it contributes to the overall Malaysia Gender Gap Index (MGGI). MGGI identifi es the gap between women and men across four sub-indices encompassing economic participation and opportunity, educational attainment, health and survival, and political empowerment. In the context of the MGGI, laborlabour force participation rate is one of the fi ve indicators in the sub-index of
    economic participation and opportunity with a weightage of 0.199 which is the third highest weightage in the sub-index. The ratio of female to male laborlabour force participation rate was 0.681. The status of the female laborlabour force in Malaysia needs to be improved as the laborlabour force participation rate for women in Malaysia was still low as compared to other Southeast Asian countries, such as Cambodia (78.4%), Viet Nam (75.2%), and Singapore (73.2%).

INITIATIVES FROM GOVERNMENT
Through a number of strategic initiatives, the government of Malaysia is actively aiming to raise the current female labour force participation rate of 55.8 per cent to a target of 60.0 per cent by 2033. To accomplish this, Minister of Women, Family, and Community Development YB Dato’ Sri Hajah Nancy binti Shukri proposed a three main strategy during Sesi Diskusi Khas Kasih Wanita: Ekonomi Madani Memperkasa Wanita programme on 29th August 2023.

First and foremost, the goal is to enhance laws and policies particularly the National Women Policy and fully implement the Anti-Sexual Harassment Act of 2022.

Second, the government intends to create a friendly ecosystem by providing subsidised childcare facilities and fi nancial assistance programmes for female entrepreneurs, such as MyKasih Kapital and the two-year Exit Programme (2YEP).

Thirdly, efforts will be focused on making training and capacity building accessible particularly through reskilling and upskilling.

To summarise, this article exposes the differences of labour force participation rates between male and female with greater rates for men in all age categories. The article also shows most of women prioritise family rather than seeking for job.

All parties need to support continuous initiatives, legislative changes and a mutual commitment to establish more equal and empowered workplace for women in Malaysia.

Yinson Eyes Brunei EV Charging Market

Yinson GreenTech has inked a deal to build charge points across Brunei as interest in electric mobility picks up the kingdom.

The agreement was inked in a signing ceremony at the satellite showroom of Maju Motor Sdn Bhd in The Mall Gadong, where Brunei’s first charge points were installed in November 2023 by Maju Motors, who is the authorised dealer for BYD in Brunei, and BEV, who is the authorised charge point operator. These charge points will be integrated into the chargEV app in about two weeks’ time, with more charge points to follow suit in the coming months.

The agreement with BEV follows close on the heels of a similar partnership that Yinson GreenTech had signed with one of Singapore’s leading charge point operators, ComfortDelGro ENGIE, in October 2023 which had paved the way for the largest combined charging network across Singapore and Malaysia.  With the addition of BEV’s charge points in Brunei and the plans of all parties to expand their respective networks, users of the chargEV app can look forward to more convenience and greater access to a growing network of chargers across all three countries.

Sunny Outlook For Sunway REIT In Coming Years, Closes FY23 Strong

Kenanga Research raised Sunway Real Estate Investment Trust’s (SUNREIT) target price (TP) to RM1.72 from RM1.63 as the REIT’s full financial year (FY23) results met expectations and its sunny outlook in the upcoming quarters.

“SUNREIT’s FY23 results met expectations with earnings driven by enhanced rental and lease incomes. The group remains positive on
the outlook for its hotel and retail segments but less optimistic for the office segment.

“Ongoing refurbishments of existing key assets with strategic retail acquisition strive to keep its portfolio fresh and relevant,” it said in its Results Note today (Jan 31).

Thus, the research house maintained its OUTPERFORM call and FY24 earnings forecasts, which remain mostly unchanged.

“Meanwhile, we introduce our FY25F earnings forecasts and raise our TP to RM1.72 as we roll over our valuation base year to FY25F with its distribution per unit of 11.2 sen.

“(Our TP) is against an unchanged target yield of 6.5%, derived from a 2.5% yield spread above our 10-year MGS assumption of 4%. The
low yield spread reflects the REIT’s diversified asset portfolio in key urban regions.

“We reckon that the group’s brand equity also benefits greatly from its affiliation to the Sunway conglomerate. There is no adjustment to our
TP based on ESG of given a 3-star rating as appraised by us. SUNREIT is one of our sector Top Picks,” it added.

Kenanga said SUNREIT’s FY23 core net profit of RM318.3 million met its full-year forecast at 100%, but was below the consensus full-year
estimates by 6%.

“The final distribution of 4.68 sen per unit led to a full-year payment of 9.3 sen, which exceeded our anticipated 8.8 sen,” it said.

Year-on-year, the REIT’s FY23 revenue increased by 10%, primarily driven by the retail segment, an increase of 11%, which benefited from consistent retail sales and foot traffic across all its retail malls.

The hotel segment also saw an improved occupancy rate of 64% compared to 54% in FY22 with full room occupancy at Sunway Resort Hotel since July 2023.

“However, net property income margin saw some compression to 73.6%, a decline by 3.2ppt on higher utilities cost. In addition to higher financing costs from a higher interest rate cycle, FY23 core net profit came in at RM318.3 million, higher by 5%.”

Kenanga said with SUNREIT’s business operations already surpassing pre-pandemic levels, the earnings trend observed in FY23 is anticipated to stay steady in the upcoming quarters.

“We opine that forward earnings will continue to be supported by its hotel segment that has improved in 4QFY23.

“The occupancy rates are expected to keep improving in FY24, primarily driven by growth in domestic leisure, corporate, and MICE (meetings, incentives, conferences, and exhibitions), along with a return to normalcy in international and domestic tourist arrivals.”

Meanwhile, it said that Sunway Pyramid’s ongoing space refurbishment of a former anchor tenant seeks to introduce more specialty-centric stores.

“The new and existing tenants could elevate rental yields going forward with 62% of its lettable area (NLA) apparently being reserved so far. This is targeted to be completed by end of FY24.

“Additionally, the recent 163 Retail Mall acquisition could present several opportunities for the group in optimising its tenant trade mix and potentially uplift its net yield of 6.5%,” the research house added.

The risks to Kenanga’s call include bond yield expansion, lower-than-expected rental reversions, and lower-than-expected occupancy rates.

China Overtakes Japan As World’s Top Vehicle Exporter In 2023

China overtook Japan as the world’s biggest vehicle exporter last year, data from the Japan Automobile Manufacturers Association showed today (Jan 31).

The Chinese auto sector has boomed in recent years largely because of massive investments in electric cars, an area where Japanese firms have been more cautious.

Japan shipped 4.42 million vehicles in 2023, the JAMA figures showed. That compared with 4.91 million exported by China, as reported by the China Association of Automobile Manufacturers this month.

China’s customs bureau put the number even higher at 5.22 million, a huge year-on-year rise of 57 per cent, with one in three of them fully electric vehicles.

China had already been exporting more vehicles than Japan on a monthly basis, but today’s data confirmed that it was also number one for a whole year.

Unlike their Chinese counterparts, Japanese automakers including Toyota ― re-confirmed yesterday as the world’s largest company by unit sales ― also make huge volumes of vehicles in other countries.

In 2022, vehicle production in Japan excluding motorcycles totalled 7.84 million units, but overseas production was almost 17 million units.

Instead of fully electric models, Japanese manufacturers have long bet on hybrids that combine battery power and internal combustion engines, an area they pioneered with the likes of the Toyota Prius.

Just 1.7 per cent of cars sold in Japan were electric in 2022, compared with around 15 per cent in western Europe, 5.3 per cent in the United States and nearly one in five in China.

Japanese automakers have vowed to up their game, with Toyota aiming to sell 1.5 million EVs annually by 2026 and 3.5 million by 2030.

The company has also invested heavily in battery technology and is banking strongly on being able to mass-produce solid-state batteries.

This technology, though unproven so far on a major scale, means batteries will charge faster and give electric cars a much bigger range than conventional ones.

Chinese company BYD this month snatched Tesla’s crown for most sales of all-electric vehicles, having capitalised on Beijing’s strong government support for the burgeoning sector.

China’s success in electric vehicles has also landed its firms in hot water with regulators in Western markets accusing them of anti-competitive practices like price-dumping.

European Commission president Ursula von der Leyen announced in September an investigation into Chinese state subsidies for electric cars.

The probe could lead the European Union to impose duties on those cars that it believes are unfairly sold at a lower price, thereby undercutting European competitors.

“It’s kind of reminiscent of what happened to Japan in the 1980s, when they started exporting a lot of automotives,” said Christopher Richter, an auto analyst at CLSA.

“So the Japanese solved it by starting (to build) a lot of factories overseas… They build overseas four times more than what they export,” Richter said in October. ― AFP

Rafiq Razali Takes Helm As Chairman Of Communications And Multimedia Content Forum

The Communications and Multimedia Content Forum welcomed Rafiq Razali, Group Managing Director of Media Prima, as its newly appointed Chairman. This comes following the organisation’s Annual General Meeting, marking the commencement of Razali’s two-year term on 30 January 2024.

Razali, renowned for steering Media Prima to a dominant position in Malaysia’s digital media landscape, succeeds Kenny Ong, Managing Director of Sony Music Entertainment for Malaysia, Singapore, and Vietnam. As the new Chairman, Razali is set to lead the charge in crafting a robust self-regulatory framework for the communications and multimedia content industry.

Expressing his gratitude for the entrusted responsibility, Razali emphasized his commitment to upholding and elevating the exemplary work done by the Content Forum since its inception. His vision includes formulating strategic initiatives that prioritize self-regulation and best practices, vital for both industry growth and consumer protection.

In his statement, Razali underscored the dynamic nature of the content landscape, emphasising the need for regulations to extend across a broader spectrum of platforms and industries.

He aimed to broaden the Content Forum’s scope, recognizing that consumed content goes beyond licensed platforms in Malaysia.

Razali’s transformative leadership in shaping Malaysia’s digital media landscape is highlighted, with strategic contributions such as unifying digital strategy across the Media Prima Group and implementing a groundbreaking Big Data strategy, earning REV Media Group the 2019 Digital Publisher of the Year distinction.

Congratulating Razali, Content Forum CEO, Mediha Mahmood expressed enthusiasm for the collaborative journey ahead. The organization looks forward to fostering a content ecosystem embracing creativity, innovation, and sustainable industry growth while upholding Malaysia’s cultural richness, harmony, and values.

The Content Forum, serving as an independent self-regulatory organisation, plays a pivotal role in advocating for self-regulation of content across electronic networked mediums. Central to this is the development and updating of the Content Code, influencing the ethical, responsible, and creative dimensions of Malaysia’s communications and multimedia industry. Rafiq Razali’s leadership promises to steer the Content Forum into a new era of industry excellence and regulatory effectiveness.

Retrenchment More Than Doubled In Singapore In 2023

Retrenchments in Singapore in 2023 were more than double that of the year before, according to advance labour market estimates released by the Manpower Ministry (MOM) on Wednesday (Jan 31).

The number of retrenchments in 2023 was 14,320, up from 6,440 in the year before.

MOM said that the top reasons for retrenchments in 2023 were business reorganisation or restructuring, ‘”due in part to the impact of global economic headwinds on outward-oriented sectors such as wholesale trade, IT services and electronics manufacturing”.

“Statistics on re-entry into retrenchment have so far showed that the majority of retrenched workers typically re-enter within six months post-retrenchment, and often in a different sector signalling the transferability of their skillsets,” said MOM.

After the sharp, post-pandemic rebound in 2022, total employment growth for the full year of 2023 was moderate amidst weaker economic conditions (from 227,800 to 89,400),” said MOM.

“The more muted pace of growth was seen for both residents and non-residents,” MOM said.

Unemployment rates were unchanged in December 2023 at 2 per cent overall, while rates remained “stable and low” for the full year of 2023.

Najib Razak’s Jail Term Halved From 12 To 6 Years: Sources

Singapore media CNA has reported that former Prime minister Najib Razak’s jail sentence for corruption has been reduced from 12 to six years by the Pardons Board following its meeting on Monday (Jan 29), sources including senior government officials told the agency.

CNA reporter Aqil Haziq reported the decision by the board, which is headed by Malaysia’s king, includes a reduction of his RM210 million (US$44.4 million) fine to an unspecified amount, according to three separate sources who spoke on condition of strict confidentiality.

The partial royal pardon for his role in the 1Malaysia Development Berhad (1MDB) case comes after serving less than two years of his prison term.

The reduction means Najib is expected to complete his sentence in August 2028. But with parole for good behaviour, he could be out in August 2026 after serving two-thirds of the new jail term. 

There has been feverish speculation about the pardon after Dr Zaliha Mustafa, Minister in the Prime Minister’s Department (Federal Territories) confirmed on Tuesday that the board members including herself had met on Monday. She said an official announcement by the Pardons Board will be made.

The meeting was one of Sultan Abdullah Ri’ayatuddin’s last official tasks before he stepped down as Malaysia’s king on Jan 31 and handed the role to Johor ruler Sultan Ibrahim Sultan Iskandar under the country’s unique rotation system for its nine royal state households.

CNA said it it contacting the Malaysian authorities for comment. Najib’s lead counsel Muhammad Shafee Abdullah said he has yet to be informed of any decision by the Pardons Board. 

Malaysia is a constitutional monarchy, giving the king the final word on the pardon of convicted criminals, a similar system that governs neighbouring Thailand.

A high-profile royal clemency was last handed down in mid-May 2018 when the then-king, Sultan Muhamad V of the Kelantan royal household, granted a full pardon to Mr Anwar. 

The latter was at the time serving a five-year jail sentence from 2015 for alleged sexual misconduct, a charge many Malaysians believed was part of a conspiracy to keep him out of national politics. 

Mr Anwar had earlier filed two separate petitions for a royal pardon, in 2015 and 2017, and both were rejected by the Pardons Board.

Reported by CNA

Yinson’s New Peru Project Expected To Contribute RM16 Million Annually

Kenanga Research raised Yinson Holdings Bhd’s target price (TP) marginally by 1% to RM3.47 and maintained its OUTPERFORM call after it has acquired the 97MW Matarani Solar project in Peru, with a 15-year Power Purchase Agreement (PPA).

“The group anticipated annual contribution is around RM16 million, with an expected an internal rate of return (IRR) of 8% (from this).

“Following the inclusion of the Matarani Solar project, the group increases its sum of parts (SoP)-TP by 1% (RM0.07 per share) from RM3.39, assuming 10% weighted average cost of capital (WACC) and 80% earnings before interest, taxes, depreciation and amortization (EBITDA) margin.

“Our TP reflects a 5% premium accorded by a 4-star ESG rating as appraised by us,” it said in its Company Update today (Jan 31).

Yinson has successfully concluded the acquisition of the Peru project, with a capacity of 97MW, from Grenergy Renewables (Grenergy) for a consideration of USD90 million (including acquisition of stake and further earnouts payable to Grenergy).

The majority of the project’s energy is under a 15-year PPA with an undisclosed off-taker, set to commence in 3QCY24.

This is a positive announcement as the project is expected to contribute approximately RM16 million annually at full operational capacity,
with an estimated tariff of USD0.03/kWh, yielding an 8% (IRR).

Grenergy will handle the engineering, procurement, construction, and commissioning (EPCC) and provide operation and maintenance
services for the initial two years upon full commencement, ensuring a smooth and timely project completion.

Kenanga said it maintained its forecasts for the group despite the commencement of Matarani Solar project in 3QFY25, it expect contributions from the project to be largely offset by startup costs.

“We continue to favour Yinson due to a strong floating production storage and offloading (FPSO) order book pipeline, its strong project execution track record and it being one of the first local oil & gas company invest in green technology companies,” it said.

The risks to Kenanga’s call include crude oil prices falling below USD70 per barrel raising required IRR for new floating production projects, regulatory risks and uncertain returns for renewable energy (RE) investments and project execution risks.

BNM Details Breakdown For Dec International Reserves

BNM shares the detailed breakdown of the international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.

The official reserve assets amounted to USD113,478.1 million, while other foreign currency assets amounted to USD2.3 million as at end-December 2023.

  • For the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to USD14,604.5 million. The net short forward positions amounted to USD23,569.2 million as at end-December 2023, reflecting the management of ringgit liquidity in the money market. In line with the practice

Adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans. Projected foreign currency inflows amount to USD2,417.5 million in the next 12 months.

  • The only contingent short-term net drain on foreign currency assets is Government guarantees of foreign currency debt due
    within one year, amounting to USD369.4 million. There are no foreign currency loans with embedded options, and no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.

Overall, the detailed breakdown of international reserves indicates that as at end-December 2023, Malaysia’s international reserves remain usable.

Investment Set To Pick Up Mid-Year With Repricing And Rate Cuts, Says CBRE’s 2024 Asia Pacific Real Estate Outlook

High interest rates, a slow recovery in mainland China and geopolitical tension weighed on the Asia Pacific real estate market in 2023, resulting in a subdued year for leasing and investment. While these concerns are set to persist into 2024, an upturn is set to commence by mid-year, leading CBRE to adopt “A Tale of Two Halves: Headwinds Followed by Recovery” as the central theme of our 2024 Asia Pacific Real Estate Market Outlook.

On the economic front, the U.S. economy is poised for a soft landing in 2024, with inflation falling and the labour market softening. Asia Pacific GDP growth is forecasted to slow to 3.5% in 2024 from last year’s 4.3%. While the recovery in mainland China remains sluggish, the coming months will see the launch of additional supportive measures to buoy economic growth.

The downward interest rate cycle in Asia Pacific is expected to commence in mid-2024 and will come on the back of easing CPI-inflation in most markets as well as widely anticipated U.S. interest rate cuts, which are set to start in May. Exceptions include Japan, where the Bank of Japan (BoJ) may raise its policy rate, although any increases are likely to be marginal and should not have much impact on investors’ borrowing costs; and mainland China, which is expected to maintain loose monetary policy.

CBRE expects an upturn in Asia Pacific real estate market in the  second half of 2024, driven by private investors and corporates seeking high quality assets, according to  the company’s 2024 Asia Pacific Real Estate Market Outlook.

While the U.S. economy is increasingly likely to experience a soft landing in 2024, with inflation decreasing and a less robust labour market, the Asia Pacific region maintains the strongest growth  globally, primarily driven by India. CBRE expects that the downward interest rate cycle in the region  will commence in mid-2024, driven by easing inflation and anticipated U.S. interest rate cuts. 

“We expect real estate investment activity in Asia Pacific to recover in the second half of 2024, as  investor sentiment improves with lower borrowing costs and more asset repricing,” said Dr. Henry Chin,  Global Head of Investor Thought Leadership & Head of Research, Asia Pacific for CBRE.

“Flight to quality is applicable to all commercial property occupiers. While cost control remains a top  priority for office occupiers, workplace optimisation and sustainability requirements are key focuses as  well, driving demand for high quality premium office space in city centres and ESG-compliant  buildings,” said Ada Choi, Head of Occupier Research, Asia Pacific for CBRE. “We expect solid  demand from retailers with rents forecasted to bottom out in the region, while logistics rents are likely to  be flat in 2024.”

CBRE’s report details the company’s 2024 Asia Pacific market outlook for multiple sectors.

Capital Markets

CBRE forecasts muted commercial real estate investment for the first half of 2024 due to limited yield  expansion and high interest rates. As interest rates start to decline in the second half of 2024, investor  sentiment is expected to improve, leading to increased market activity. CBRE forecasts a 5% to 10%  recovery in total investment volume in Asia Pacific for 2024 compared with 2023 levels.

Office

CBRE forecasts the new Grade A office supply in Asia Pacific to reach 70 million sq. ft. in 2024, with  vacancy rates peaking and hovering at all-time high of 20% over the next three years. Office demand is  expected to slightly improve in 2024, with regional gross leasing volume growing by around 0 to 5% year-on-year. The tech sector is anticipated to be the strongest driver of expansionary demand,  exhibiting faster revenue growth.

Retail

Although the retail sector in Asia Pacific is expected to be impacted by weaker consumer spending due  to slower economic growth, retailers are set to leverage favourable market conditions to upgrade and  expand. Most retail markets in the region are likely to see modest rental growth, with prime core retail  properties continuing to outperform due to solid leasing demand. 

Industrial & Logistics

Appetite for expansion among Asia Pacific industrial and logistics occupiers should moderate further in  2024. Leasing activity in 2024 will primarily be driven by occupiers seeking to upgrade to prime core  logistics space with modern transport networks and better technology, along with compliance with  sustainability requirements. The availability of space is expected to increase in 2024 due to ample  development pipeline and growing sublease space, limiting opportunities for rental growth and leading  to uneven vacancy distribution.

Hotels

The recovery in airline capacity remains slow in Asia Pacific, with a gradual return of mainland Chinese  tourists. CBRE forecasts that hotel average daily rates (ADRs) in most markets will normalize.  Occupancy growth in well-managed assets is expected to drive revenue growth. Operators  demonstrating flexibility and capitalising on the upswing in tourism, particularly in Japan and Korea, are  likely to benefit the most.