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Sime Auto To Pare Debts With UMW Asset Disposals

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Editor
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Sime Auto’s takeover of UMW has expanded its presence in the local automotive market to the mid-market and affordable segments, from its previous predominantly premium offerings. Kenanga says this puts it in a better position to navigate the impending fuel subsidy rationalisation.

Upon the conclusion of SIME’s takeover of UMW in Feb 2024, SIME’s presence in the local automotive market will be expanded to the mid-market (i.e. Toyota) and affordable (i.e. Perodua) segments, from predominantly premium offerings (i.e. BMW). This puts it in a better position to navigate the impending fuel subsidy rationalisation. Moreover, SIME will likely benefit from the anticipated new launches of Perodua D66B and Toyota Yaris Cross by April 2024.

Post acquisition, by virtue of having well known marques namely Toyota and Perodua under UMW, SIME’s market share in the local automotive total industry volume (TIV) will surge from 3% to >50%. UMW provides access to the massive Toyota ecosystem, a strong high value supply chain and will enhance SIME’s local market exposure. Geographically, the auto group will have equal exposure to Malaysia, China and Australia with remaining 10% in other markets vs. being predominantly in China previously.

UMW will be delisted in Feb 2024 (offer period ended on 31st January 2024, and UMW will be suspended from trading starting today, 9 February 2024). Recall, the all-cash deal (RM5.8b) to acquire UMW is financed by Sukuk Murabahah (RM3b) and sales proceeds from the disposal of its healthcare business which was completed in Dec 2023 (RM2.8b). Post-business integration, SIME’s net debt and net gearing will increase from RM3,995m to RM5,877 and 0.2x to 0.4x, respectively (which includes UMW’s net cash position at RM1,118m). Subsequently, SIME plans to pare down its debt through the disposal of Malaysia Vision Valley land in Labu, Negeri Sembilan (RM2,959m), and the disposal of Komatsu and UMW’s Serendah land.

Kenanga is raising its FY24-25F net profit forecasts by 2% and 14%, respectively, on earnings enhancement from UMW’s acquisition. Correspondingly, the house upgrades its SoP-derived TP by 14% to RM2.80 (from RM2.45). There is no adjustment to our TP based on ESG given a 3-star rating as appraised by us.

The house likes SIME for the robust growth in its businesses, post the economy reopening, the strong brands under its stable such as BMW, Caterpillar, Toyota and Perodua, its attractive dividend yield of >5%.

Unfavourable Factors Prompts Kenanga To Revise MYR Forecast

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Editor
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Bank Negara Malaysia international reserves continued to accumulate, increasing by USD1.3b or 1.2% MoM to a 10-month high of USD114.8b as of 31 January 2024. Sufficient to finance 5.4 months of imports of goods and services (previously retained imports: 6.9 months) and is 1.0 time total short-term external debt

The rise is mainly due to the ongoing increase in foreign currency reserves. Foreign currency reserves (+USD1.3b or 1.3% MoM to USD102.2b): up for the third straight month, despite a sell-off in Malaysia’s debt securities and a stronger USD.
This surge could be attributable to a rise in foreign receipts. Notably, the BNM’s net FX reserves reached an eight-month high of USD62.7b in December (Nov: USD58.2b) due to a substantial reduction in debt service payments, particularly in principal, related to loans and securities (-RM14.6b; Nov: -RM18.0b).

Meanwhile, special drawing rights, other reserve assets, gold and IMF reserve position remained relatively unchanged. In ringgit terms, the value of BNM reserves rebounded by RM6.4b or 1.2% MoM to RM527.2b. USDMYR monthly average (4.68; Dec: 4.66): the ringgit has reversed most of its gains from December as the market unwound its dovish Fed positions, prompted by consistently robust US macroeconomic readings and resistance from Fed officials to commit to an early easing cycle. The ringgit has also been dragged down by the depreciation of the yuan, reflecting the ongoing weakness in the Chinese economy. Nevertheless, the MGS-UST yield differential has improved, partly due to rising demand for safe-haven US Treasuries amid escalating tensions in the Middle East.

Regional currencies: due to the overarching USD strength, all ASEAN-5 currencies depreciated against the safe haven currency, led by IDR (-0.8%), followed by PHP (-0.8%), THB (-0.5%), MYR (-0.5%), and SGD (-0.3%). The DXY averaged around 103.0 in January (Dec: 102.7), marking a 0.3% gain. This uptick is partly attributed to seasonal factors, influenced by the reversion of December tax flows by US corporations.

Kenanga believes policy rate to remain unchanged for the foreseeable future due to relative price stability. While headline inflation may experience a slight uptick to average around 2.7% in 2024 due to domestic policies and geopolitical factors, core prices are anticipated to converge to their long-term average of 1.8%. This, coupled with a robust GDP growth outlook, is likely to keep the BNM on autopilot mode throughout 2024.

As for USDMYR year-end forecast is (4.42; 2023: 4.59): despite US robust economic facade, the house identifies a few vulnerabilities, including ongoing concerns over the regional bank crisis and risks associated with the debt-driven consumer
spending. Kenanga’s expectation remains that June will mark the Fed’s long-awaited pivot towards easing. A series
of back-to-back rate cuts by the Fed, combined with growing investor confidence in Malaysia resulting from the
government expenditure-based fiscal consolidation, are seen to bolster the ringgit in 2H24.

We continue to foresee an appreciation of the ringgit from its current level, the extent of this gain is expected to be tempered by the absence of domestic catalysts, China’s weak economic momentum, and prevailing geopolitical uncertainty. Hence, the house said it has revised the end-2024 USDMYR forecast to 4.42 from 4.25 previously.

Local Bond Saw Outflow Of RM5.1 Billion In Two Months

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For the second consecutive month in January, foreign investors reduced their exposure in Malaysia’s debt securities, recording a bigger net outflow of RM5.1b (Dec: -RM2.1b), mainly driven by a sell-off in Malaysian Government Securities and Malaysian Treasury Bills.

Consequently, total foreign debt holdings declined to RM265.3b in January, with its share to the total outstanding debt reaching an 11-month low of 13.2%. The shift in global risk sentiment, triggered by escalating tensions in the Middle East and China’s weak macroeconomic conditions, has significantly reduced demand for risk assets in January. The largest outflow of the month, were recorded on January 15 due to the hawkish repricing of Fed’s rate hike expectations following a hotter-than expected US CPI reading. However, these net sales were marginally offset by RM1.6b inflow on January 25, fuelled by China’s unexpected stimulus measures announcement, which sparked a risk rally. Additionally, the optimism was reinforced as Bank Negara Malaysia maintained the overnight policy rate (OPR) at 3.00%, accompanied by a positive outlook on the economy.

Broad-based outflows, driven by divestment from MGS, MTB, and Malaysian Islamic Treasury Bills (MITB). MGS: recorded its largest outflow in five months, reducing the foreign holdings share to 33.8%, the lowest since May 2011. MTB: first outflow in four months, resulting in the foreign holdings share reaching an 80-month low of 12.6%. MITB: reverted to outflow; foreign holdings share shrank to an almost five-year low of 4.6%.

Foreign investors remained net buyers of FBM KLCI stocks for the third straight month. Inflows doubled from the amount recorded in December as foreign investors continued to purchase domestic equities, particularly utilities stocks (e.g., YTL Power International), which saw a net buying of RM0.6b. Notably, the pace of inflows was partly curbed by the RM0.2b outflows recorded on January 18, marking the largest daily outflow since mid-October 2023.

Overall, the capital market recorded its second consecutive net foreign outflow. Investors to gradually shift their focus away from the US debt market to higher-yielding emerging market assets. While investors might continue to hold US debt for a while longer due to its attractive yields and high coupons, the anticipated Fed rate cuts in 2H24 could lessen their interest, especially in Treasury floaters. As Fed Fund rates decrease, investors seeking to maintain their yields may turn towards high-yielding emerging market debt, especially to countries where central banks are not planning rate cuts.

Despite potential challenges from slowing global economic activity and rising geopolitical tensions, Malaysia’s debt capital flows are expected to see an uptick in portfolio investments. This optimism stems from growing investor confidence, buoyed by a stable OPR and a positive outlook on the government’s reform policies.

Tata Consultancy Recognised For Cancer Care Work In Malaysia

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Editor
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Tata Consultancy Services has received the “Pioneer Sustainable Development Action Recognition” at the United Nations Global Compact Network Malaysia & Brunei (UNGCMYB) Forward Faster Sustainability Awards 2023. The recognition celebrates the transformative impact of the CANSupport initiative, a TCS initiative that revolutionises paediatric cancer care in Malaysia.

Developed in collaboration with the Malaysia Aviation Group and National Cancer Society Malaysia, CANSupport is also equipped with a comprehensive application that meets the urgent healthcare needs of children undergoing cancer treatment through innovative features like symptom tracking, travel assistance for treatment, and a robust doctor’s dashboard powered by advanced data analytics.

In Malaysia, there are over 4,300 children suffering from cancer and only 28 doctors available. Quoted during the launch event in March 2023 last year.

Jeevan Rajoo, Country Head of Tata Consultancy Services Malaysia Sdn Bhd commented, “This accolade from UNGCMYB affirms our relentless pursuit of humanizing technology through Tech for Good, as embodied by CANSupport. To date, we have impacted 1,694 lives, including 726 direct beneficiaries and 968 indirect beneficiaries from the program. Looking ahead, CANSupport is on track to potentially engage more patients in 2024 to assist their fight against cancer.

Dr Murallitharan Munisamy, Managing Director, National Cancer Society Malaysia said “This recognition is not just a testament to our relentless efforts, but it also shines a light on the resilience and courage of our young warriors battling cancer. Our collaboration with TCS is pivotal in advancing healthcare is unwavering, and this recognition fuels our determination to continue making a different in the lives of children affected by this devastating disease.”

Philip See, Group Chief Sustainability Officer of MAG, said “Malaysia Aviation Group is honoured to contribute to this collaborative effort aimed at alleviating the challenges faced by families and patients, making it easier for them to access essential care and follow-up treatment. We remain committed to our role as the national carrier of the country by ensuring safe and seamless travel for children seeking essential treatment.”

Faroze Nadar, Executive Director, UN Global Compact Network Malaysia & Brunei said “The Pioneer Sustainable Development Action Recognition honours those leading the way in sustainable innovation. The CANSupport initiative by TCS is an outstanding illustration of this, showcasing the profound impact that technology can have in the healthcare sector.”

Dragon Enters: Happy Chinese New Year

By
K. Harinderan
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At this very moment, millions of people around the world are busy celebrating for one of the year’s biggest festivals – Lunar New Year, which marks the first new moon of the lunar calendar. This year, it falls on February 10, kicking off the 15-day Spring Festival.

Though incredibly complex, the Chinese zodiac calendar is best described as a 12-year cycle represented by 12 different animals, in this order: Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog and Pig. Your personal zodiac animal sign is determined by your year of birth, meaning 2024 will welcome plenty of baby dragons to the world. Those born in 2025 will be snakes, and so on.

Followers believe that for each Chinese zodiac sign, luck will depend largely on the positions of the Tai Sui – a collective name for the stellar deities thought to rotate parallel to and in the opposite direction of Jupiter.

Different geomancy masters may interpret the data differently, but there is usually a consensus on what the year means for each zodiac animal based on the positions of the stars.

There are countless folk tales attached to Lunar New Year, but the myth of “Nian” stands out as one of the most fun.

Legend has it Nian was a ferocious underwater beast with sharp teeth and horns. Every Lunar New Year’s Eve, it crawled onto the land and attacked a nearby village.

On one such occasion, as the villagers rushed into hiding, a mysterious old man showed up and insisted on sticking around despite being warned of impending doom.

To the villagers’ surprise, the old man and the village survived utterly unscathed.

The man claimed to have scared Nian away by hanging red banners on the door, lighting firecrackers and donning red clothing.

This is why wearing the fiery colour, along with hanging red banners and lighting firecrackers or fireworks, are Lunar New Year traditions, all of which are still followed today.

Fun aside, Lunar New Year can actually be a lot of work. Festivities often last for 15 days – sometimes even more – with different tasks and activities taking place over that period.

The first few days of the Lunar New Year, many people have to travel and visit immediate family, other relatives and friends. Bags are stocked with presents and fruits to give out at homes visited. Visitors will in turn be showered with gifts after exchanging conversations over Lunar New Year treats.

Married people also have to give out red packets to those who haven’t yet tied the knot – both children and unmarried juniors. It’s believed these envelopes – known as hongbao/lai see – could protect children by warding off evil spirits called sui.

Day three of the Lunar New Year (which falls on February 12 in 2024) is named “chi kou/cek hau,” or red mouth.

It’s believed that arguments are more likely to happen on this day, so people will avoid social interactions and instead visit temples.

While there, some will use the opportunity to make offerings to offset any potential bad luck. As noted earlier, for many people Lunar New Year is a time to consult the stars to find out what lies ahead in the coming months.

Every year, certain Chinese zodiac signs clash with the stars negatively so temple visits are considered a good way to resolve those conflicts and bring peace in the coming months.

The Management and Staff of BusinessToday wish all celebrating a Happy Chinese New Year, Xin Nian Kuai Le!

Analysts Expect Ringgit To Trade Rangebound At 4.76

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Editor
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The ringgit is expected to trade range-bound in a cautious mode, hovering around the RM4.76 level with an upside bias against the US dollar next week, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit had been in an oversold position for some time and a long overdue technical correction is expected to emerge to lift the currency slightly higher.

He noted that issues surrounding the timing for the United States (US) rate cut and the anticipation for a forceful China economic stimulus will continue to drive market sentiments.

Next week, the key focus will be the US consumer price index (CPI), which will be released on Tuesday, and Malaysia’s fourth quarter (4Q) 2023 gross domestic product (GDP) announcement on February 16, he shared.

“We opine that the final quarter GDP of 2023 would be fairly the same as the advance estimates of 3.4 per cent, bringing the full year 2023 growth to 3.8 per cent. Malaysia’s GDP for this year is likely to be better than 2023 on account of improvement in net exports and domestic demand.

“The latest assessment of the government’s economic outlook this year will be unveiled through the announcement of GDP for 4Q 2023. So, the market is going to be cautious,” he told Bernama.

Afzanizam added the market will also monitor the US CPI data and if it is higher than expected, it would strengthen the narrative to increase interest rates.

For the week just ended, the local note was traded mixed while weighing on various US economic data to gauge the US interest rate path as well as expectations of China’s huge stimulus package.

On a Friday-to-Friday basis, the ringgit was traded lower against the US dollar at 4.7595/7705  compared to 4.7155/7185 a week earlier.

However, the local unit was traded higher against other major currencies.

It rose vis-a-vis the Japanese yen to 3.1849/1925 from 3.2142/2164 a week earlier, increased against the British pound to 6.0017/0156 from 6.0160/0199 and appreciated versus the euro to 5.1241/1359 versus 5.1352/1384 previously.

The ringgit was traded mostly lower against a few Asean currencies.

It eased versus the Singapore dollar to 3.5342/5429 from 3.5309/5334 a week ago and fell against the Indonesian rupiah to 304.3/305.2 compared to 301.0/301.4 previously.

The ringgit slipped against the Philippine peso to 8.51/8.55 from last week’s closing rate of 8.43/8.44  but advanced against the Thai baht to 13.2540/2902 from 13.3735/3873 last Friday.

MRL Denies ECRL Tunnel Blasting Impacted Houses

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Editor
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Malaysian Rail Link the manager of the ECRL railway project has said that construction work of the East Coast Rail Link project near Desa Melor, Serendah has taken into consideration minimal impact and complies with guidelines and conditions.

It added that the project complies with the Environmental Impact Assessment (EIA), Environmental Management Plan (EMP) and Erosion and Sediment Control Plan (ESCP), among other things.

This comes after news reports that 60 houses have been affected by blasting work conducted at the ECRL tunnel which as published on Thursday.

MRL said blasting works for the construction of the tunnel or Adit (horizontal passage) can only be done from 8am to 6pm on Monday to Friday in the area near Desa Melor, and no blasting operations are carried out on Saturday and Sunday.

“The MRL also confirmed that there is Adit No.4 construction work near Desa Melor from Monday to Friday at this time, but the closest residential area from the location of Adit No.4 is about 300 metres away and not 200 metres as reported by a news portal,” read the statement.

MRL said the progress of Adit No.4 has reached a depth of 800 metres from the planned 813 metres.

“This means that the location of the latest explosion up to the residential area of Desa Melor, which is close to the area where the ECRL project is under construction, is more than 1,000 metres,” it said.

The government owned company said the ECRL project will also take vibration data and air blast data every time a blast is carried out, adding that the Mineral and Geoscience Department (JMG) has determined that the reading vibrations should not exceed 3 millimetres per second, while the reading of air blast from explosion should not exceed 120 decibels.

“Relevant readings are also sent to JMG for monitoring from time to time. However, based on the existing records, the ECRL project has complied with the perimeters.”

It added that the main contractor had signed a memorandum of understanding with the residents’ association in the area on November 18 last year, among which the contractor agreed to provide a certain amount of funds to the association as a special aid to ease the burden of residents who are facing cracks in their homes.

CNY Day 1, Traffic Slow But Under Control

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Editor
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LLM traffic pic at 9:30 am Saturday

Traffic flow was generally smooth and under control on several major highways as at 9am on the first day of Chinese New Year today, according to the highway operators.

A spokesman of the Malaysian Highway Authority (LLM) said heavy traffic was reported northbound from the Jalan Duta toll plaza, Sungai Besi toll plaza (southbound) and Gombak toll plaza (eastbound), but was smooth and under control.

Traffic was moving slowly northbound from Rawang to Sungai Buaya, Slim River to Sungkai, Perak and southbound from Nilai to Bandar Ainsdale, heading towards Seremban.

“Traffic was also moving slowly from Skudai to Senai and Kulai to Simpang Renggam. Smart Lane is activated. Traffic flow on the KL-Karak Expressway (KLK) and the East Coast Expressway 1 (LPT1) and LPT2 has been smooth so far.

“Traffic flow at the Bentong toll plaza was also smooth and there was no increase in the number of vehicles,” he told Bernama.

PLUS through its PLUS Trafik X account said an accident occurred at KM47.6 from Sedenak to Simpang Renggam and the traffic was slow but there were no blocked lanes.

“A car broke down on Elite KM1.3 southbound from Shah Alam to Seafield causing the left lane to be blocked but traffic flow was under control”, it said.

Will Generative AI Hinder Human Creativity?

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Editor
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By: Dr. Jazli Aziz- Some of the largest strides mankind has made over the past few decades have been the advancements in personal computing and the creation of the world wide web. Every sector and every industry around the world has been affected by these advancements, and education is no exception.

Looking to more recent technological advancements, artificial intelligence (AI) has taken the world by storm. So much so, that the acronym “AI” was named the Collins Word of the Year for 2023. And just like the influence personal computing and the world wide web has had, AI is already leaving an indelible mark on the world of education.

Debates on whether that influence is good or bad will probably continue for years to come, but regardless of which side of the fence you are on, it’s undeniable that students are using AI today, and that’s something we need to be aware of as educators.

Generative AI can be found almost everywhere online. From generic tools like the ever-popular ChatGPT, to more task-specific tools like ChatPDF and Jenni AI. We even have AI that can produce non-text-based output as well – Midjourney and DALL-E can create artwork, AIVA and Soundful can create music, Synthesia and InVideo can create videos – all from user-defined prompts.

While these are all amazing technological advancements, AI has of course been met with cynicism as well, especially among those who champion human creativity over the soulless products of generative AI. And while I am an advocate of using AI to enhance teaching and learning, a small part of me is indeed worried about the possible impact AI can have on the originality and creativity of our younger generation who undoubtedly, will continue to use AI for the rest of their lives.

As a university lecturer, one of the tasks that falls under my purview is to assess student presentations, be it undergraduate presentations in class or research presentations by postgraduates. After almost 20 years in academia, from the time I was an undergraduate myself until today, I’ve probably attended hundreds of presentations. And though education is quite different now compared to 20 years ago, surprisingly, student presentations have remained largely unchanged.

Considering the range of modern presentation tools available to students today, one would expect student presentations to be more unique and noticeably different from one another. Instead, what I often see are presentations that at their core are all the same, just with different graphical assets and colour schemes used. They seem to lack originality.

Tools like Canva and Visme are exceptional for creating visually engaging presentations and graphic designs. I’ve used both myself. Each offers thousands of visual assets, themes, and designs to help you make any kind of presentation you want. Which on the surface, sounds amazing! But does simply choosing a template from a library help students develop a sense of originality? Is it creative expression or merely a choice made on a whim?

Additionally, these presentation tools also come with generative AI to help users write the content of their presentations. So not only would the designs and visual aesthetic of presentations lack student originality, even the written content could be generated by AI as well.

Assessment of student work is one aspect of education that needs to be reimagined thanks to the possibility of students submitting AI-generated work as their own. But more importantly, the development of student originality, creativity, and critical thinking could also be impacted using generative AI. Which in my mind, is of far greater concern. If students graduate having an under-developed sense of originality and a poorer capacity for critical thinking, how would that affect their careers? And if our graduates struggle to think creatively, what does that mean for future innovation?

In the video game “Detroit: Become Human”, human-like androids live side-by-side with mankind. At one point in the game, players learn that in this fictional world set in 2038, less than 5% of music is made by humans, with androids making the rest. We are unlikely to ever reach this point of civilisation in our lifetime, but I do believe that the rampant proliferation of generative AI will eventually begin to diminish human creativity if we are not careful. Generative AI can be a wonderful learning tool, yet we must ensure it does not rob us of our opportunities to grow.

……

The author is a Senior Lecturer at the Department of Oral and Craniofacial Sciences, Faculty of Dentistry, Universiti Malaya,

The Race To Boost Asian Valuations

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Editor
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Asia ex-Japan equity markets saw a revival in investor sentiment this week. The trigger: attempts by policymakers in China and Korea to boost equity market valuations and revive investor confidence. These measures follow Japan’s arguably successful efforts in recent years to improve shareholder value. While China’s measures are promising, its fundamentals will need to improve for a sustainable rally in equities to take hold.

While China equities remain a core holding in our Asian foundation allocations, Standard Chartered says it sees tactical opportunities in its state-owned enterprises sector as they respond to the government’s attempts to boost shareholder value. South Korea remains a preferred equity market in Asia ex-Japan; the latest government proposals to boost valuations supports this preference (see page 6). Globally, the US equity market, with its relatively higher return on equity, and Japan, with earnings tailwinds from a weak JPY, remain our preferred equity markets.

Reviving China’s investor confidence: China’s authorities have taken steps to stem a continued slide in its equity markets. These range from policy rate cuts, measures to boost bank lending, restricting short-selling and directing state funds to boost equity purchases. This week, it replaced its top securities market regulator. While the measures suggest a more coordinated effort to revive investor confidence, more forceful fiscal and monetary policies are needed to revive business and consumer confidence, support the property sector and reverse growing deflationary pressures – this week, data showed consumer prices slumped the most y/y since 2009. Until then, we see tactical opportunities in China’s state-owned enterprises sector, which is likely to be the first to respond to government directives to boost shareholder value through stock buybacks and higher dividend payments. The house also prefers communication services, technology and consumer discretionary sectors in China, which are likely to benefit the most from the government’s targeted policy measures.  

US remains top preference globally: The stronger-than-expected Q4 23 earnings season supports preference for the US equity market globally. While average earnings growth is now estimated at 9%, up from the 4.7% expected at the start of January, preferred are communications services (+54%) and technology (+21%) sectors have delivered among the strongest earnings growth. In terms of revenue growth, three preferred US sectors are – healthcare (7.7%), technology (+7%) and communications services (+6.5%) sectors – topped the rankings on the back of structural drivers such as Artificial Intelligence, cloud computing and demand for semiconductors.

Sustained US economic resilience: January’s data showed the US economy continues to generate more jobs than expected (although falling number of weekly hours worked suggests underlying demand for labour is softening). Meanwhile, still-robust services sector and a cyclical pick-up in manufacturing suggests the post-COVID expansion could extend longer than previously expected. The Atlanta Fed GDPNow is projecting 3.4% annualised growth in Q1 2024.

Inflation pressures: Sustained economic growth amid a tight job market has raised the risk of a revival in wage pressures (average weekly earnings growth accelerated to 4.5% y/y and the Atlanta Fed’s median wage growth, while slowing, remains high at 5% y/y). Also, manufacturers have started to pay higher prices for their inputs for the first time since April (ISM report). The strong data supports our view that the first Fed rate cut will come later than the market expects (SC forecasts a June cut).

Investor diversity and investor positioning in US equities remain stretched, sustaining the risk of a near-term pullback. Nevertheless, Standard Chartered says it remains Overweight US equity markets in its foundation allocation, given strong earnings and economic backdrop. To hedge against the risk of a revival in inflation, last month the house added US short-duration inflation protected bonds to our portfolio. Other potential inflation hedges include gold, infrastructure assets and energy sector equities.

Hermes Posts Record Profit, Rewards 22,000 Staffs With US$4300 Bonus

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Editor
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 French luxury giant Hermes posted on Friday (Feb 9) record annual sales and net profit, with plans to reward all employees worldwide with a bonus following strong growth in every region last year.

The group reported a better-than-expected profit of €4.3 billion (US$4.6 billion), up 28 per cent from 2022, on sales that surged 16 per cent at current exchange rates to €13.4 billion.

“In 2023, Hermes has once again cultivated its singularity and achieved an outstanding performance in all metiers (businesses) and across all regions against a high base,” executive chairman Axel Dumas said in an earning statement.

The group said its 22,000 employees worldwide would get a €4,000 (US$4,300) bonus early this year as part of “its policy of sharing the fruits of growth with all those who contribute to it on a daily basis”.

It will also propose an increase in dividends for shareholders.

Shares in Hermes rose by more than four per cent to €2,618 in late morning deals at the Paris stock exchange, propelling the group above cosmetics giant L’Oreal in terms of market capitalisation.

L’Oreal’s stock price fell more than 7 per cent to €420 after posting lower-than-expected results for the fourth quarter.

Shares in LVMH, the world’s largest luxury goods group, were down 0.3 per cent to €802, though it also reported record annual earnings last month.

Gucci owner Kering was up 0.7 per cent to €412, a day after reporting slumping profits.

AFP

President Xi Talks About Reform And Taiwan In CNY Speech

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Editor
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Chinese President Xi Jinping, held his annual Spring Festival greetings wishing all Chinese citizens as the cities go quite with the mass exodus to the hometown completes.

Xi, also general secretary of the CPC Central Committee and chairman of the Central Military Commission, delivered a speech at the gathering at the Great Hall of the People, greeting Chinese people of all ethnic groups, compatriots in Hong Kong, Macao and Taiwan, and overseas Chinese.

The President noted the year had been difficult facing an exceptionally complicated international environment and arduous tasks of reform, development, and maintaining stability.

“We pooled strength from Chinese modernisation, kept in mind both domestic and international imperatives, overcame multiple difficulties and challenges, and made solid progress on a new journey toward building China into a modern socialist country in all respects,” Xi said.

Listing the progress made, Xi said the country’s total grain output reached a new high, employment and prices have been kept generally stable, and breakthroughs were made in scientific and technological innovation.

Reform and opening up continued to deepen in China, a new round of reform of Party and state institutions has been basically completed, the country’s ecological environment continued to improve, and new steps have been taken on modernising national defense and the armed forces, he said.

Xi also praised deepened efforts on exercising full and rigorous Party self-governance and fighting corruption.

“We actively support Hong Kong and Macao in better integrating into the overall situation of national development, firmly oppose separatist acts of ‘Taiwan independence’ and interference by external forces, and vigorously defend our country’s sovereignty, security and development interests,” Xi said.

Lauding China’s solid efforts on advancing major-country diplomacy with Chinese characteristics, Xi said the country has added certainty and positive energy to a world of change and disorder.

Xi said that looking back at all the hard work over the past year, we have more deeply realized that building a strong country and realizing national rejuvenation on all fronts through a Chinese path to modernization is not only a bright road for the Chinese people to pursue a better and happy life, but also a just way to promote world peace and development.

He stressed the need to adhere to the general tone of the work that seeks progress while maintaining stability, effectively enhance economic vitality, prevent and resolve risks, improve social expectations, consolidate and enhance the positive trend of economic recovery, continue to improve people’s livelihood and well-being, as well as maintain overall social harmony and stability.

Underscoring the need to deepen reform across the board, Xi said efforts must be made to encourage entrepreneurship and creativity among all members of society, injecting great vigor into Chinese modernisation.

As the totem of the Chinese nation, dragon is deemed strong, fearless and benevolent, Xi noted.

Xi points to the Year of the Dragon, and hoped the Chinese people will pioneer and forge ahead with great endeavor and dedication, collectively writing a new chapter in advancing modernisation.

As Migration To e-Invoice Begins, IRB Shares Explainer On SDK

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Editor
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The beta version of the Software Development Kit (SDK) has been uploaded to the e-Invoice Micro website on the official portal of the Inland Revenue Board as a reference and guide for taxpayers.

According to the LHDN, the SDK specifically explains topics such as application programming interfaces (APIs), standard inputs and outputs, standard error codes, explanations of document types, checking logic, code plans, integration guidelines and frequently asked questions.

In addition to the SDK, the general guidelines for electronic invoices (version 2.2) and the special guidelines for electronic invoices (version 2.0) have also been uploaded to the Micro e-Invoice Page, LHDN said in a statement.

“Taxpayers can access and download all guidelines and the SDK via the link https://www.hasil.gov.my/e-invois/.

PM Calls On PDRM To Improve Performance, Restore Image And Integrity

By
Nurul Huda
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Prime Minister Datuk Seri Anwar Ibrahim has called on all members of the Royal Malaysia Police (PDRM) to improve their performance in maintaining public order and security as well as restoring the integrity of the security agency.

He said that that PDRM needs skills and efficiency, with higher level of professionalism and credibility among its personnel, whilst avoiding involving in small groups that tarnish its image.

Anwar said this is because PDRM is seen as the the country’s domestic primary defence force that was supposed to uplift the dignity of the country.

“Just a few days ago the Inspector-General of Police (IGP) reprimanded police officers involved in several corruption and power abuse cases. He told me that the number is small, but even if the number is relatively small, it still gives a bad image of PDRM as a whole.

“So, I ask for PDRM’s cooperation to try and improve the image and system of our country. Malaysia has an excellent record in many ways, but the country’s image is also tainted by cases of power abuse and corruption,” he said during a meet-and-greet session with Melaka police personnel at Melaka Tengah Police District headquarters here today (Feb 9).

Selangor International Halal Event Scheduled For October At KLCC

By
Editor
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Selangor is upping its pro business initiative with the announcement of Selangor International Halal Conference 2024 which will be scheduled for October and moving to a bigger space.

The event is anticipated to strengthen the halal industry’s development and supply chain, organised by Halal International Selangor the event will be held at the Kuala Lumpur Convention Centre and is expected to draw 200 local and international exhibitors.

Its acting chief executive officer, Muhammad Syaril Showkat Ali, said that the conference will centre around three key themes, namely halal certification, logistics, and digital innovation.

Visitors can expect more that just halal food but also on logistics and services. This year a strategic cooperation with Tanzania has been establish on halal industry development, which includes supply chain and tourism.

Selhac was first held in March 2022 and a transaction value of RM37.73 million, surpassing the initial estimate of RM20 million. This figure continued to rise to RM57.4 million last year.

The halal conference serves as a significant platform for the halal industry in Asean and Malaysia to expand their marketing networks.

Hektar REIT Appoints SMTrack’s Chong Kai Wooi As Independent Director

By
Nurul Huda
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Hektar Real Estate Investment Trust (Hektar REIT) appointed Chong Kai Wooi as independent and non-executive director effective immediately.

In a Bursa filing today (Feb 9), the REIT said Chong, 53, is currently SMTrack Bhd executive director.

With 30 years experiences in global multi national corporations, Chong has played leadership roles encompassing business leadership, sales leadership, people leadership with technology leaders.

“He was formerly the NEC Corporation Malaysia managing director with annual turnover of 100 Oku Yen and staffs force of over 300 people nationwide.

“He led NEC Malaysia to unprecedented growth as he transformed the organization from a product to a services led organization. His employees engagement scores steadily improved YoY to a high of 79% for 2022, way above the industry norm,” it said.

The group added, in his prior position, Chong was instrumental to plan and execute the strategy for Hewlett Packard Enterprise in the telecommunication segment, consulting practice across the Asean, Taiwan, Hong Kong region over 13 countries.

“He’s best known for his objective oriented approach, principled and with a strong focus on profitable growth, building businesses and teams across many organizations that he has previously served in, both in country and across the Asian region.

Petronas Gives Attention To Sabah’s Academia

By
Editor
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Petronas offered grants, worth RM5.75 million, made under its PETRONAS-Academia Collaboration Dialogue (PACD), to seven academicians from Universiti Malaysia Sabah.

The grants is to be used to carry out research in green energy-related fields such as clean energy storage system, bioenergy development, efficient hydrogen generation, as well as in operational efficiency through data science and artificial intelligence.

The second initiative is the signing of an agreement between Universiti Teknologi PETRONAS and University College Sabah Foundation Both to offer the UCSF-UTP Foundation Programme, a one-year foundation programme based on UTP foundation curriculum structure.

This collaboration will pave the way for Sijil Pelajaran Malaysia top achievers from Sabah to undergo foundation studies at UCSF. Upon completion of the one-year foundation programme at UCSF, students will have the opportunity to pursue their bachelor’s degree in science and engineering programmes at UTP campus in Perak.

The inaugural PACD was held in 2021, where 11 universities were selected to collaborate with PETRONAS Research Sdn Bhd. In 2023, the biennial PACD saw 52 projects chosen from 23 universities nationwide.

Toyota’s Daihatsu To Unveil New Management Structure Next Week

By
Editor
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Toyota Motor’s Daihatsu unit said on Friday it planned to unveil a new management structure next week.

Soichiro Okudaira, president of Daihatsu, whose production has been hampered by issues related to safety testing irregularities, also told reporters that the company planned to spend more time and allocate more workers for development.

The group has also decided to resume production and shipments of the Pixis Epoch and Pixis Truck / Van, which is outsourced to Daihatsu Motor Co. (Daihatsu).

On January 30, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) confirmed that the above three models are in compliance with the standards of the Road Transport Vehicle Act, following the Probox, which has already been released from shipment suspension. In addition, Toyota said it has been receiving both strong criticism and warm comments, along with requests for its products from customers and other concerned parties.

Bukit Aman Warns, No Fireworks Past Midnight And Lists Permitted Firecrackers

By
Editor
-

Bukit Aman has reminded the public especially those celebrating the lunar new year that only 45 types of firecrackers have been authorised for sale since 2018 in accordance with the stipulated standard operating procedures.

Police secretary DCP Alzafny Ahmad, in a statement today, said that the sale of firecrackers to public is only allowed during festive seasons like Hari Raya Aidilfitri/Aidiladha, Chinese New Year, Deepavali, Christmas, Gawai and Kaamatan.

He said of the 45 firecrackers listed only Pop-Pop, Happy Boom Glow of Sunset, Happy Boom Sunset Bar, Happy Boom Glories and Happy Boom Flower Silver Cracking Rain (20 shots) are in the general sale category.

Nine fireworks are listed in the conditional sales category and may only be traded by licenced dealers and these include Happy Boom Red Cracker (eight inches), Happy Boom Red Cracker (Cake) and Happy Boom Celebration Red Fire Cracker.

Others on the conditional sales list are Happy Boom Assorted Celebration Cake Repeater (one inch 49 rounds), Happy Boom Assorted Celebration Cake Repeater (1.5 inch 138 shots), Happy Boom Shoot Cake (one inch 16 shots), Happy Boom Shoot Cake (one inch 36 shots), and Happy Boom Rat 50 (50 missile).

“The online sale of fireworks is strictly prohibited and it is an offence under Section 8 of the Explosives Substance Act 1957, punishable by imprisonment of up to seven years or a fine of RM10,000, or both.

“The public are also reminded not to play with fireworks past midnight, which may cause disturbance or danger to the public,” he said.

He warned that failure to comply may result in prosecution under Section 13 of the Minor Offences Act 1955 or Section 7 of the Explosives Substance Act 1957, with penalties of up to seven years imprisonment or a fine of RM10,000, or both.

“Police advised the public to play fireworks in open areas to avoid disturbing the peace and causing distress to residents,” he said.

He also urged the community to be responsible and practise safety precautions when setting off fireworks during a celebration.

Berjaya Assets’ Unit Disposes 19.2 Million Berjaya Corp Shares For RM5.6 Million

By
Nurul Huda
-

Berjaya Assets Bhd (BAssets) announced that its wholly-owned subsidiary, Berjaya Bright Sdn Bhd (BBright) had disposed 19.2 million ordinary shares, representing about 0.33% stake in Berjaya Corporation Berhad (BCorp) for RM5.59 million in cash.

In a Bursa filing today (Feb 9), BAssets said the shares were disposed via direct business transaction in aggregate on 11 August 2023, 6 December 2023 and 8 February 2024.

The first disposal involved a total of 12.2 million BCorp shares to unrelated parties for a total cash consideration of about RM3.5 million or at an average selling price of 29 sen per BCorp share.

“The second disposal involved 7 million BCorp shares to U Telemedia Sdn Bhd (UTelemedia), an investment holding company controlled by Tan Sri Seri Vincent Tan Chee Yioun for a total cash consideration of about RM2.09 million or at 30 sen per BCorp share.

“Besides that, BBright had also during the period from 20 September 2023 to 26 September 2023 disposed in the open market a total of 9 million BCorp shares representing about 0.15% equity interest in BCorp for a total cash consideration of about RM2.65 million,” it said.

The group said following the disposals and open market disposals, BAssets and its subsidiaries now hold a total of about 174.85 million BCorp shares representing about 2.99% equity interest in BCorp.

“The cash considerations for the disposals were arrived at after taking into consideration the prevailing market prices of the BCorp shares at the time of the disposals and the shares were disposed of free and clear of all liens, charges and claims of any kind or restrictions.”

The group said the cash proceeds from the disposals will be utilised for repayment of borrowings and as working capital for the BAssets group and enabled the group to realise part of its investments in BCorp.

The carrying amount of the BCorp shares pursuant to the disposals in the books of the BAssets group as at 31 July 2023 and 30 November 2023 is RM0.29 per BCorp share whilst as at 31 January 2024 is RM0.285 per BCorporation Share, incurred since 2007.

BCorporation is a major shareholder of BAssets and Vincent Tan is a major shareholder of BAssets, BCorp and UTelemedia.

BAssets said Vincent Tan’s daughter as well as BAssets and BCorp executive director Chryseis Tan Sheik Ling had abstained from all board deliberations and voting in relation to the disposals, as she is an interested director

Meanwhile, Johor Princess and BAssets and BCorp non-executive chairman Tunku Tun Aminah Sultan Ibrahim Ismail, as well as BAssets shareholder and a major shareholder of UTelemedia, is deemed an interested director.

“As such, she had abstained from all board deliberations and voting in relation to the second disposal. She is not deemed interested in the first disposal but has also voluntarily abstained from all board deliberations and votes,” it added.

The group said the board of BAssets (save for Chryseis Tan and Tunku Tun Aminah) is of the opinion that the disposals are in the best interest of the BAssets Group.

“The Audit and Risk Management Committee of BAssets is of the opinion that the disposals are fair, reasonable and on normal commercial terms and are in the best interest of the BAssets group.”

The highest percentage ratios applicable to the disposals pursuant to Paragraph 10.02(g) of the Listing Requirements is about 0.46%.

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