EVD Berhad has informed that the board will be temporarily relieving Mah Seong Huak who is the company’s Executive Director in charge of operation from operational duties.
This is in accordance to his capacity as an employee of the company overseeing the day-to-day executive management functions in area such as Project Management and Engineering, Project Tender and Budget, Project System Engineering and Business Development.
The group has further said the temporary relieve of operational duties of Mah Seong Huak will have no financial or operational impact on the EVD Berhad.
In a separate statement, the also notified on ongoing litigations with 3 High Court Winding-up Petitions of EVD Engineering Sdn Bhd, a wholly-owned subsidiary is coming up for hearing in February. It said the suit was from construction industry payment and Adjudication Act 2012 claims by sub-contractors totalling RM1,593,955.22.
The Board said it is currently investigating, sourcing, retrieving the relevant documents in respect of the Suit and will make further announcement to Bursa Malaysia Securities Berhad after procuring such Documents.
Rapid Synergy Berhad (Rapid) replied to Bursa Malaysia Securities Berhad’s Unusual Market Activity (UMA) query yesterday in relation to sharp fall in price of the company’s shares recently, saying it is not aware of any irregularities that might have triggered the event in question.
In a Bursa listing today (Jan 11), it said that after having made due enquiries with the directors, major shareholders and such other relevant person, it is not aware of any corporate development that has been previously announced relating to the group’s business and affairs.
However, it said that the management is currently considering proposals to sell certain landed properties of the group.
“These proposals are still in the stages of discussion. The Board believes that it would be more appropriate to release announcement(s) to Bursa Securities once the terms of the offers have been finalised and agreed upon by both parties.
“Save for this, the Board is not aware of any corporate development relating to the group’s business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion,” it said.
It was also not aware of any rumour or reports with regards of its business and affairs or any other possible explanation to account for the trading activity.
“The group is in compliance with the Bursa Securities’s Main Market Listing Requirements, in particular Paragraph 9.03 of the Bursa Securities MMLR on immediate disclosure obligations,” it added.
Today, Rapid hit the limit down again for the second day in a row and was still on the top loser list on Bursa Malaysia.
Yesterday, the group received an unusual market activity (UMA) query from Bursa Malaysia Securities Berhad on the sharp fall in the price of its share price as the group saw a sharp decline by 30%, falling RM7.02 to RM16.38.
The counter has fallen around 40% over the past month.
Alphabet Inc.’s Google is laying off hundreds of staff working on its digital assistant, hardware and engineering teams as it sustains a drive to cut costs.
The affected workers included those working on the voice-based Google Assistant and at the augmented reality hardware team. Employees in the company’s central engineering organisation also got hit by cuts, the company said.
The reductions come as Google’s core search business feels the heat from rival artificial-intelligence offerings from Microsoft Corp and ChatGPT-creator OpenAI.
On calls with investors, Google executives pledged to scrutinise their operations to identify places where they can make cuts, and free up resources to invest in their biggest priorities.
“Throughout the second half of 2023, a number of our teams made changes to become more efficient and work better, and to align their resources to their biggest product priorities,” a Google spokesperson said in a statement.
“Some teams are continuing to make these kinds of organisational changes, which include some role eliminations globally.”
Workers at the search giant have been on edge since January of last year, when parent Alphabet said it would cut about 12,000 jobs, more than 6% of its global workforce.
That sent shock waves through Silicon Valley. But the company continued to make smaller trims over the course of 2023, including layoffs within teams focused on recruiting, news products and the Waze mapping app.
While the large round of cuts in January 2023 was telegraphed by Alphabet CEO Sundar Pichai, this year’s reductions have been communicated by lower-level leaders, such as vice presidents and human resources, according to a current employee and a former worker.
Amazon.com Inc also laid off hundreds of staff in its Prime Video and studios business this week, raising questions about whether another major round of layoffs was underway in Silicon Valley.
Semafor first reported the layoffs to the Google Assistant team, while 9to5Google first reported the reorganisation for hardware. Affected staff have begun receiving the news and will have the opportunity to apply for open positions elsewhere within Google, the company said.
The Alphabet Workers Union, which represents some of its employees, criticised the job cuts in a statement posted to the social network X, formerly known as Twitter.
“Our members and teammates work hard every day to build great products for our users, and the company cannot continue to fire our coworkers while making billions every quarter,” the group said. “We won’t stop fighting until our jobs are safe!” – Bloomberg
Warisan TC Holdings Berhad’s (WTCH) unit, WTC Automotif (M) Sdn Bhd (WTCA), today had entered into an distribution and service agreement with China’s GAC AION New Energy Automobile Company Limited (GAC AION).
In a Bursa filing today (Jan 11), the group said, with the agreement, WTCA is appointed as the sole and exclusive distributor of electric vehicles supplied by GAC AION, among others.
GAC AION is a manufacturer of electric vehicles and offers new energy products and services under the GAC Group. Aion was introduced as an electric vehicle sub-brand under GAC New Energy in 2018, and as a marquee in 2020.
Meanwhile, WTCA is principally involved in assembly, distribution and sale of commercial and passenger vehicles.
In the agreement, GAC IAON grants WTCA the exclusive right to import, distribute and sell the vehicles supplied by GAC AION and its spare parts, to provide after-sale services as well as appoint dealers with regards to the abovementioned services.
The group said said that the agreement for the GAC IAON project is for the duration of three years and may be renewed by either party with three months notice prior to its (agreement) expiry.
It said that the project will provide an opportunity for the group to diversify its business activities by expanding the product range to electric vehicles sector to cater for diversified customer base.
“It will also align with our objective to drive towards Economy, Environmental, Social and Governance (EESG) for the long-term sustainable growth of our business besides broadening the earning base of the group.
“As WTCH group is involved in assembly, distribution and sale of commercial and passenger vehicles, it will be able to enjoy the benefits and advantages of the synergistic benefits derived from economies of scale with the implementation of the project,” WTCH said.
The group said the agreement will not have any material effect of the group’s issued and paid-up share capital of WTCH and the shareholdings of its substantial shareholders as well as earnings per share and net assets per share.
“(However), the agreement will require funding for working capital purposes and accordingly, there shall be impact on the gearing of WTCH group for the financial year ending 31 December 2024,” it added.
Hume Cement Industries Bhd’s (HCIB) announced that its unit Hume Concrete Sdn Bhd (HCCT) has accepted an offer from Skygate Technology (KL) Sdn Bhd (Skygate KL) to sell a plot of land in Prai Industrial Estate in Penang for RM39.8 million.
In a Bursa filing today (Jan 11), HCIB said the offer was made by Skygate KL to purchase the plot of land, together with the building on it, on “as is where is” basis.
The size of the plot was not disclosed in the filing.
The group said the proposed disposal will not have any effect on the issued share capital and the shareholdings of the substantial shareholders of the company.
However, should the proposed disposal is completed, HCIB said the group expects to realise an estimated net gain on disposal of approximately RM32 million.
“For illustrative purposes only, based on the HCIB shares in issue as at 29 December 2023, the consolidated earnings per share and consolidated net assets per share of HCIB is expected to increase by approximately 5 sen and 6 sen respectively,” the group said.
It added that the disposal is not subject to the approval of the shareholders of HCIB.
The group said the offer entails that the 10 percent (including 2% of forfeitable deposit) of the purchase price shall be paid up on signing of sales and purchase agreement.
Meanwhile, the balance of RM35.82 million, shall be paid within 3 months from the date of the the purchaser, Skygate KL’s solicitors’ receipt of the requisite approvals from the Penang Development Corporation (PDC) and the Penang State authority for the transfer of the property.
Malaysian Communications and Multimedia Commission (MCMC) fully supports the MADANI Government’s commitment to ensure providers mobile network services do not charge extra for access to 5G networks.
Announcement by the Minister of Communications Fahmi Fadzil regarding the matter is in line with the government’s continuous efforts in providing access to technology advanced telecommunications that are fair and equitable for all Malaysians.
MCMC, in a statement on Thursday, said they will ensure that each mobile network service provider comply with the commitments that have been stated.
As of December 31, 2023, 5G network services have successfully reached 80.2 percent coverage in populated areas.
Malaysians are advised to channel any complains through the MCMC User Portal at https://aduan.mcmc.gov.my or contact the line 1-800-188-030 on issues regarding 5G access charges.
The latest reading on inflation is set for release Thursday at 8:30 a.m. ET (US) as investors search for clues about when the Federal Reserve will start bringing down interest rates.
The December Consumer Price Index is expected to show a slight increase in annual headline inflation to 3.2%, up from the 3.1% increase seen the month prior. But when removing the volatile food and energy categories, economists expect that “core” inflation fell to an annual rate of 3.8% from 4.0% the month prior.
The print will be critical for investors who have been increasingly pricing in the odds of a soft landing — where inflation retreats to 2% without an economic downturn — since the last CPI report. Such an outcome could mean the central bank’s interest rate hiking campaign is over and that it could start cutting rates, bringing down the cost of borrowing for businesses and consumers.
Economists at Bank of America expect readings of headline and core inflation slightly higher than the consensus. But even “core” CPI at 3.9% in December could keep the door open for a Fed rate cut in March, per the BofA economics team.
“A CPI report in line with our forecast would continue to signal ongoing progress towards the Fed’s 2-percent target,” US economist Stephen Juneau wrote in a note to clients. “Therefore, in our view, it would keep the Fed on track for 100bp of cuts this year beginning with a 25bp cut in March and continuing at a quarterly cadence thereafter,” Yahoo Finance cited.
As of early Thursday morning, markets priced in a roughly 69% chance the Fed cuts interest rates in March, per the CME FedWatch Tool.
On a monthly basis, economists see prices increasing 0.2% in December, a move up from the 0.1% seen the previous month. Meanwhile, economists project that core inflation increased 0.3% month over month, unchanged from November.
Under the hood, economists at Goldman Sachs highlighted three key areas to watch in Thursday’s report: car prices, airfares, and shelter. Goldman sees car prices and shelter continuing their path lower while airfares could be an upside risk in the December report.
Goldman has seen “a meaningful increase” in its airline team’s real-time price measures. This could lead to a 5% increase in December airfare prices and a 3 basis point contribution to “core” CPI, per Goldman.
“Going forward, we see further disinflation in the pipeline in 2024 from rebalancing in the auto, housing rental, and labor markets, though we expect a small offset from a delayed acceleration in healthcare,” Goldman economists Manuel Abecasis and Spencer Hill wrote in a research note.
“We forecast year-over-year core CPI inflation of 2.9% and core [Personal Consumer Expenditures] inflation of 2.2% in December 2024.”
A customer visits a supermarket in San Mateo, California, the United States, Dec. 12, 2023. The consumer price index, a closely watched inflation gauge, increased 0.1 percent month on month in November, and was up 3.1 percent from a year ago, the U.S. Bureau of Labor Statistics reported Tuesday. (Photo by Li Jianguo/Xinhua via Getty Images)
A customer visits a supermarket in San Mateo, California, the United States, Dec. 12, 2023. (Photo by Li Jianguo/Xinhua via Getty Images) (Xinhua News Agency via Getty Images)
While markets have been aggressive in pricing in interest rate cuts as the path forward for inflation appears lower, Fed officials have been more measured.
Fed Governor Michelle Bowman said on Monday that while the Fed may eventually need to cut rates if inflation falls further, “we are not yet at that point.”
In separate remarks on Monday, Atlanta Fed president Raphael Bostic echoed a similar sentiment.
“We are in a restrictive stance, and I’m comfortable with that, and I just want to see the economy continue to evolve with us in that stance and hopefully see inflation continue to get to our 2% level,” he said, according to media reports of his comments.
Given the Fed’s tentative comments and the aggressive rally seen in stocks since the last inflation report, Wall Street strategists have tempered expectations for stock reaction following the report.
“[December’s] CPI numbers have a bit of an asymmetric risk,” Interactive Broker’s Chief Strategist Steve Sosnick told Yahoo Finance Live. “I think a good number, a better-than-expected number, is already priced in. … I don’t think that an upside surprise to inflation is priced in right now.”
Bursa Malaysia took a breather to end at its intraday low today (Jan 11), dragged down mainly by the consumer products and services as well as industrial products and services sectors, ahead of the release of the US consumer price index (CPI) data later in the day.
Genting Malaysia lost 17 sen to RM2.68, Petronas Chemicals slid 12 sen to RM6.88, Genting Bhd eased 19 sen to RM4.68, and Press Metal Aluminium was eight sen lower at RM4.82.
These stocks pulled down the composite index by a combined 5.53 points.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) edged down by 3.86 points to 1,483.00 from Wednesday’s close of 1,486.86.
The benchmark index opened 0.29 of-a-point better at 1,487.15 and thereafter moved to its highest level of 1,492.44 in the early morning session.
On the broader market, decliners beat gainers 568 to 406, while 447 counters were unchanged, 797 untraded and 29 others suspended.
Turnover declined to 4.64 billion units worth RM3 bil from 4.97 billion units worth RM2.84 bil on Wednesday, Bernama reported.
The Securities Commission Malaysia (SC) today charged Pixelvest Sdn Bhd (Pixelvest) Chin Wai Lan, better known as Sophia Chin, with 17 money laundering charges involving more than RM164.5 million.
In a statement today (Jan 11), the statutory body said Chin was charged under section 4(1)(b) of the Anti-Money Laundering, Terrorism Financing and Proceeds of Unlawful Activities 2001 (AMLATFPUAA) for receiving proceeds of unlawful activities.
“According to the charges, she received the illegal proceeds (amounting to about RM164.5 million) in her personal bank accounts as well as in several companies of which she is a director and partner.
“These companies include Pinetree Field Sdn Bhd, SC Wealth Planners Sdn Bhd, Quarters Venture Sdn Bhd, New Straits Venture Sdn Bhd and Quarters Capital PLT,” the statuary body said.
A total of sixth companies were said to be involved, according to reports, including Pixelvest Sdn Bhd.
SC said the alleged offences took place between Dec 23, 2020 and Oct 2, 2022 in Kuala Lumpur and Selangor.
Chin Wai Lan was charged before two separate Sessions Courts, where she pleaded not guilty and claimed trial to all 17 charges.
“Sessions Court Judge Datin Sabariah Othman granted bail at RM7 million with two sureties. She was ordered to surrender her passport to the court and to report to the SC on a monthly basis until the completion of the trial.
“(Meanwhile), in a separate court, Sessions Court Judge Tuan Azrul bin Darus also granted Sophia Chin bail at RM7 million with one surety. He also imposed similar conditions on the passport surrender and reporting to SC,” it added.
If she is found guilty, Chin shall be liable to imprisonment for up to 15 years and to a fine of not less than five times the sum or value of the proceeds of the unlawful activities at the time the offence was committed or RM5 million, whichever is higher.
The regulator said the charges against Sophia Chin are a continuation of the SC’s enforcement action relating to the same matter against two other individuals yesterday.
SC had charged Ang Jen Chuen (Dexter Ang), and Syaiful Riezal bin Ahmad (Syaiful Riezal) for similar offences under section 4(1)(b) of AMLATFPUAA on Jan 10, 2024.
Bank Pembangunan Malaysia Berhad (BPMB) has announced a significant move by granting Tawarruq Asset Financing facilities totaling RM2.7 billion to Prolintas Managers Sdn Bhd, a wholly-owned subsidiary of Projek Lintasan Kota Holdings Sdn Bhd (PROLINTAS). This substantial financing marks a crucial economic driver to support PROLINTAS Group in its extensive restructuring initiative, involving four key concessions – Ampang – Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Lebuhraya Kemuning – Shah Alam (LKSA), and Kajang Dispersal Link Expressway (SILK).
PROLINTAS Group’s commitment to sustainability and affordability of the highways is showcased through a comprehensive restructuring exercise, which includes extending the concession period and laying the foundation for a listing exercise involving the Concession Companies.
The successful restructuring by PROLINTAS, coupled with strategic investments in safety and technology, has ensured operational efficiency. This, in turn, has allowed the company to maintain sustainable investment returns and yield to investors, even after reducing toll rates. PROLINTAS continues to fulfill its corporate responsibility as a vital asset company contributing to the betterment of the public.
Bank Pembangunan, Group CEO, Roni Abdulwahab, emphasised the significance of their partnership with PROLINTAS, highlighting BPMB’s commitment to delivering impact capital for national development and playing a counter-cyclical role in bolstering long-term sustainable infrastructure investment.
“Our partnership with PROLINTAS exemplifies Bank Pembangunan’s commitment to delivering impact capital for national development and our counter-cyclical role in bolstering long-term sustainable infrastructure investment. Given their integral role in the Kuala Lumpur outer ring road system, these highways play a crucial part in linking communities to satellite cities and economic hubs within the Klang Valley.” he said.
Group CEO of PROLINTAS, Group CEO, Dato’ Mohammad Azlan Abdullah, expressed pleasure in partnering with BPMB on this financing initiative. He emphasized the alignment with the government’s efforts to reduce toll rates and ease the cost of living.
The financing from BPMB will aid PROLINTAS in continuing to enable access to support economic development, restructuring debt for feasibility, and offering enhanced urban connectivity, realizing its mission to become the commuters’ route of choice.
Established in 1995, PROLINTAS has significantly improved mobility within the Klang Valley, benefiting approximately 600,000 daily users by alleviating congestion and reducing travel time.
Dato’ Mohammad Azlan Abdullah, Group Chief Executive Officer of PROLINTAS said, “We are pleased to partner with BPMB on this financing initiative that aligns with the government’s effort to ease the cost of living by reducing our toll rates. At PROLINTAS, we are committed to providing the best highway service. BPMB’s financing will help us to continue enabling access to support economic development, restructure our debt to make it more feasible while continuing to offer enhanced urban connectivity and realising our mission to become the commuters’ route of choice.”
OCBC Bank (Malaysia) Bhd announced that it will be developing a forward-looking and convenient schemes in support of Malaysia and Singapore cooperation through Johor-Singapore Special Economic Zone (JS-SEZ).
In a statement today (Jan 11), its chief executive officer Tan Chor Sen said that the schemes will be to support corporates and small medium enterprises (SMEs) in Singapore to fulfill their banking needs in Johor.
“Among these will be a smoother business account opening process involving a simplified know-you-customer (KYC) screening process and appointed branch officers at all OCBC branches in Johor Bahru.
“The move allows for a more seamless cross-border experience and is aligned to the OCBC group’s internationalisation strategy centred on the Asean-Greater China region,” it said.
Tan said with the great interest in Malaysia in several sectors, the group believes the move to facilitate a more seamless account opening process will be welcomed warmly by the Singapore business community.
Among the sectors he was referring to are sustainable energy, electricity trading, electronics, healthcare, financial industries and business-related services.
“OCBC’s customers in both Malaysia and Singapore can look forward to even more initiatives up ahead to support the cross-border growth of SMEs,” he added.
He said the group welcomes the signing of the memorandum of understanding (MOU) for the Johor-Singapore Special Economic Zone (JS-SEZ) by Malaysia and Singapore today.
“(We welcome) what it holds for the future of economic growth in the region,” Tan added.
SME Bank is set to boost its financing approvals by RM2.5 billion this year, with the aim of supporting over 1,000 small and medium enterprises (SMEs).
The bank’s Group President and CEO, Datuk Wira Aria Putera Ismail, highlighted that of the RM2.7 billion approved in the previous year, approximately 90% was allocated to SMEs.
“For the current year, RM2.5 billion is designated for SMEs, with the remaining funds directed towards commercial financing.”
“Our primary focus is on SMEs encountering challenges in securing financing from traditional banks,” he said during a visit by Deputy Minister of Entrepreneur Development and Cooperatives Datuk Ramanan Ramakrishnan to SME Bank’s headquarters here today.” he said.
This year’s focus remains on SMEs facing challenges in securing financing from traditional banks, with key sectors identified for targeted funding including technology, healthcare, construction, and government-recognized high-growth potential service sectors.
Aria emphasised a holistic approach, encompassing financing, capacity building, and facilitation of market access, particularly for ventures into global markets such as the United Kingdom and Europe.
“In every interaction with SMEs in the market, our approach encompasses various facets: firstly, financing; secondly, capacity building.”
“Furthermore, for ventures into export markets, we emphasise an additional element, facilitating market access,” he added.
Deputy Minister of Entrepreneur Development and Cooperatives, Datuk Ramanan Ramakrishnan, disclosed a total growth approval target of RM3.5 to RM4 billion for 2024. Of this, RM2.5 billion is earmarked for SMEs, while the remaining RM1.5 billion is allocated for commercial financing, including environmental, social, and corporate governance development.
“RM3.5 billion to RM4 billion worth of growth approval will be issued from SME Bank. From that amount, RM2.5 billion is for SMEs, and the remaining RM1.5 billion is for commercial financing including environmental, social, and corporate governance development.”
“There will be also an allocation for SMEs to penetrate international markets and cross-border programmes,” he said.
Commending SME Bank’s collaboration with the Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR) to enhance the number of registered social enterprises, Ramanan highlighted plans to extend CEDAR’s nationwide assistance, subject to approval at the ministry level before reaching the Prime Minister.
“CEDAR has been initiated from 2021 until 2023, and SME Bank, in collaboration with our department, has appointed 2400 entrepreneurs in stages, including three tiers.”
“This development could potentially serve as inspiration for other business owners to actively partake in similar initiatives. SME Bank, in turn, is strategically targeting a surge in participant numbers compared to previous instances,” he said.
“I will bring this matter to the minister for discussion and present such initiatives that can benefit the public. After obtaining approval at the ministry level, we will certainly bring it to the attention of the Prime Minister,” he added.
SME Bank’s strategic initiatives align with national efforts to stimulate economic growth, promote social enterprises, and empower SMEs in their expansion endeavors.
UEM Sunrise Berhad unveiled its upgraded award-winning mobile app, the hUb Prop, at the Kiara Bay Sales Gallery today. Originally serving as a digital concierge, the app has evolved to transform the customer experience at UEM Sunrise.
Upgraded features for the hUb Prop include a user-centric interface allowing homebuyers to monitor project progress, billing, and product defects. The app also offers a range of services designed to enhance the home buying journey, providing customers exclusive access to rewards and privileges through the UEM Sunrise loyalty program, Tresor.
This app-upgrading initiative is in response to Tresor contributing to 34% of the company’s sales in 2023, primarily due to repeat purchase discounts and an attractive referral scheme. UEM Sunrise consistently invests in creating value-added services for customers, enhancing features and adding exclusive offerings through the Tresor Partnership Program.
UEM Sunrise CEO Sufian Abdullah stated at the event, “Digitalization has always been our top priority. We are committed to introducing cutting-edge solutions for our customers and building an app that assists property investors and homeowners in navigating their homeownership journey with ease and efficiency.”
hUb Prop serves as a self-service channel for users to access selected services and information about UEM Sunrise, including exclusive rewards, product launches, latest events, sales campaigns/promotions, immersive virtual tours, progress billing monitoring, project progress viewing, scheduling key handover appointments, and defects management.
Additionally, the Tresor program has expanded, adding over 30 merchants and brands offering services such as interior design packages, home furnishings, home warranty, emergency home assistance, and solar panel subscription and ownership.
“We are proud to announce that we are the first property developer to incorporate ESG initiatives into a mobile app. Our collaboration with Sireh Park’s ‘Plant the Future’ campaign is a testament to UEM Sunrise’s commitment to biodiversity and environmental conservation,” said Sufian.
Tengku Zafrul Abdul Aziz said today (Jan 11) that foreign investors weighing opportunities in Malaysia have moved on from the 1Malaysia Development (1MDB) corruption scandal that had weighed heavily on the country’s credibility, said.
The investment, trade, and industry minister told CNBC in an interview that the topic has not cropped up in meetings with capital market and private investors over the last year, suggesting that the issue is no longer a factor that can influence foreign direct investments.
“This issue is a major issue for Malaysia and for the last 10 years. But you know, the prime minister and myself, we have been going around the last one year to market Malaysia, and this issue has not cropped up,” he said.
“Other issues have cropped up… you know, competition is getting stiffer, but no, not much issue was raised by both capital market investors as well as private investors.”
Prime Minister Datuk Seri Anwar Ibrahim has gone on overdrive to shore up foreign investments since taking office, leveraging on international conferences to squeeze in meetings with top executives from some of the biggest multinational firms as he sought to consolidate his leadership with promises of “inclusive economic growth”.
Anwar said raising living standards will be a top priority and one of his administration’s key performance indicators. He vowed to create more high-paying jobs by bringing in “high-value” investments that would push Malaysia out of its middle-income rut, and become the world’s top 30 largest economies.
Malaysia attracted RM225 billion in approved investments in the first nine months of 2023 to exceed its full-year target, the government’s investment promotion agency said in December.
However, a documentary on the scandal released on popular streaming service Netflix last week appeared to have revived public interest in the scandal.
The trials of then prime minister Datuk Seri Najib Razak, accused of being a key figure in the scheme that saw billions of ringgit stolen from the investment firm, is still ongoing.
The former Umno president is currently serving a 12-year prison sentence after being convicted on all counts in the first of his 1MDB-related trials and exhausting all avenues for appeal.
Maybank Investment Bank (Maybank IB) maintained POSITIVE stance on the oil and gas (O&G) sector in its 2024 Outlook Note, saying that the sector will be buoyant but volatile.
“Our general thesis on the Malaysia Oil & Gas sector has not changed much since our previous report.
“As United States’ Energy Information Administration (EIA) has forecasted a record-high demand for oil in 2024 to 2025E, we think that the elevated crude oil price environment will be here to stay in the medium term,” it said today (Jan 11).
The research house also maintained its in-house Brent Oil assumption of USD80 per barrel for 2024E and expected Brent oil prices to remain elevated throughout the year with much volatility in sight.
It reckoned that the oil markets will continue to face the energy tri-lemma in 2024 between improvement in demand, as EIA forecasts record-high demand of 102.34 million barrels per day (mbpd); supply tightness due to structural under-investments; and potential geo-political risks, trade wards and embargoes.
“These factors will continue to induce volatility in the oil markets, in our view,” said Maybank IB.
The research house said crude supply and demand gap will also narrow in 2024.
In EIA’s latest Short-term Energy Outlook (STEO) report in December 2023, it expects a net crude oil deficit in 1Q24 with world consumption slightly eclipsing production by 0.8 mbpd.
“EIA also forecasted a record-high crude oil consumption with expectations that the supply-demand gap to be harshly narrow expecting supply deficit at an average of 0.15 mbpd throughout the year,” it said.
According to Maybank IB, in the latest OPEC+ meeting on Nov 30, the organisation and its allies agreed to voluntarily cut outputs by 2.2 mbpd until the end of 2024, led by Saudi Arabia rolling over its current production cuts – to support the stability and balance of oil markets.
“Going forward, we expect further output cuts from OPEC+ if prices do not hold above USD75/bbl. OPEC contributes to more than 30% of global oil production.
“With the organisation and its allies’ efforts to continue curtailing production in 2024E, we expect oil supply to remain tight in the foreseeable future,” it said.
The research house said in Petronas Activity Outlook (PAO) 2024 to 2026, Petronas has hinted the sizeable capex in 2024E.
“Based on our yearly observations, Petronas has to decide on how it is to strike a balance between three major decisions, capex spending, dividend commitment and balance sheet preservation.
“As at end-Sep 2023, Petronas sits on a net cash position of RM96.7 billion. Given a lower dividend commitment of RM32 billion for 2024 (per 2024 Fiscal Outlook Report from RM40 billion in 2023) despite higher average Brent crude oil price expectation of USD85 per barrel (Petronas forecast).
“We see the possibility of Petronas capex being sizeable, with most subsegments seeing increased investment in 2024E, in our view,” it said.
Maybank IB said companies under our coverage, Yinson Holdings Bhd (Yinson), MISC Bhd, Bumi Armada Bhd, Icon Offshore Bhd, and Dialog Group Bhd (for which we have BUY calls on) are key potential beneficiaries of the ramp-up of activities stated in the PAO2024 to 2026 document.
“We also think that 2024 will be a good year particularly for Dayang Enterprise Holdings Bhd (DEHB MK, Not Rated, CP: MYR1.71), Petra Energy Bhd (PENB MK, Not Rated, CP: RM0.985) and Carimin Petroleum Bhd (CARIP MK, Not Rated, CP: RM0.885) due to the large ramp-up in machinery condition monitoring (MCM).
“(This is) coupled with the increase in requirements of offshore support vessel (OSV) as Dayang and Petra has exposures in this sub-segment,” it added.
Its top picks for the sector are Yinson, Icon Offshore, Velesto Energy Bhd and Wasco Bhd.
The government will look into more details before reviewing the rate of the windfall profit levy (WPL) imposed on the palm oil industry, according to Plantation and Commodities Minister Datuk Seri Johani Abdul Ghani.
“At present, there is no plan for us [to review the WPL]. But we are looking into the issues raised by industry players. They told us that the cost [of production] has increased and needs to be adjusted.
Speaking on the sidelines of the Palm Oil Economic Review and Outlook Seminar 2024 hosted by the Malaysian Palm Oil Board today (Jan 11), he said: “But this thing needs to be discussed further, and we need to look at the details of the cost later.”
In November last year, 15 palm oil groups including the Malaysian Palm Oil Association, the Palm Oil Millers Association, the National Association of Smallholders, the Sarawak Oil Palm Plantation Owners Association and the Sarawak Dayak Oil Palm Planters Association called on the government to review and reconsider the WPL imposed on the industry. They urged that the WPL’s effective price threshold for palm oil be raised.
Currently, the WPL is levied on palm oil prices above RM3,000 per tonne in Peninsular Malaysia, and above RM3,500 per tonne in Sabah and Sarawak. The WPL on the palm oil industry has been in place since 1999, with periodic revisions of the levy rate and price threshold value.
Notably, in January 2022, the government raised the levy rate for Sabah and Sarawak from 1.5% to 3%, equalising the rate to that of the peninsula.
By: Dr. Rulia Akhtar Research Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya
Education stands as a crucial element in addressing worldwide poverty. It is universally acknowledged as the cornerstone for the technological, economic, social, and political advancement of nations. Countries across the globe acknowledge the necessity of incorporating practical and functional aspects into education, where the acquisition of skills and the development of competencies lead to increased productivity, fostering societal development, and elevating the per capita income of individuals. Nevertheless, diverse forms of education exist, and employing vocational education as a strategy to diminish poverty holds significant importance. Technical and Vocational Education and Training (TVET) emerge as pivotal components for nurturing a workforce equipped with skills essential for the contemporary job landscape, aiming to alleviate poverty levels, as outlined in Goal 1.
TVET is a systematic and targeted approach to learning with the aim of making individuals highly efficient in specific occupations and economic pursuits. This method expeditiously equips individuals to join the competitive workforce, enhancing their skills to adapt to the swiftly evolving technological landscape. Vocational training enables individuals to acquire specific skills tailored to various job types, particularly those in technical or trade-based fields such as electrical work or sewing.
According to UNESCO, a robust and high-quality TVET program represents a viable educational pathway capable of fostering sustainable empowerment. It is recognized as a potent force driving the productive sectors of an economy, serving as a key element in poverty reduction and empowerment, ultimately contributing to enhanced social and economic productivity and competitiveness.
Poverty can take many different forms. These include not having enough money or resources to support oneself, hunger, malnutrition, illness, lack of access to necessary services and education, high rates of illness and death, homelessness, and poor, dangerous, and damaged surroundings. Additionally, social discrimination and exclusion contribute to the multifaceted nature of poverty. Vocational and technical education is frequently characterized as an educational form designed to prepare individuals for employment in specific occupations or occupational groups. The cultivation of skills through vocational and technical education is now consistently emphasized as a top priority by education ministers in both developing and developed nations. Consequently, countries worldwide are actively working to promote TVET.
In Malaysia, there are more than 1,000 TVET institutions, with 506 of them being public institutions. Malaysia has diligently undertaken measures to advance sustainable development through TVET education and is committed to continuing these efforts. TVET assumes a crucial role in fostering sustainable development within Malaysia, serving as a vital component in addressing the skills gap by aligning education with industry needs. This approach results in the creation of a skilled and adaptable workforce, enhancing Malaysia’s global competitiveness and attractiveness for high-quality investments.
The Ministry of Education claims that TVET programmes were created in response to industry needs and to further economic growth in line with technological advancements, global workforce mobility, globalisation, and the knowledge-based economy. TVET education plays a major role in creating a skilled labour force, which is in line with Malaysia’s goal of becoming a developed country.
TVET stands as a crucial platform for attaining sustainable development, with an emphasis on achieving the Quality Education goal outlined in SDG (Goal 4). Malaysia has diligently taken steps to fulfil its sustainable education development goals, with the Malaysian Economic Planning Unit spearheading sustainable development initiatives for the country. The increasing demand for TVET is driven by its unique ability to empower students for job independence, distinguishing it from other streams reliant on specific job openings in the government, private sector, corporate sphere, or industries.
In Malaysia, more than 90 percent of graduates from TVET programs are readily employable. Over the years, TVET graduates have become highly sought after because of their comprehensive capabilities and skills across various fields, surpassing those of university graduates in certain aspects. Their significant contributions, both direct and indirect, have played a crucial role in the development of Malaysia, particularly in the context of poverty reduction. The pivotal question arises: how does TVET education play a crucial role in alleviating poverty in Malaysia? TVET addresses a spectrum of economic and social challenges, including:
TVET programmes are intended to teach individuals practical and job-specific skills. It helps people gain the skills they need to get jobs and make a living by offering training in a variety of fields such as manufacturing, agriculture, construction, and services. This raises income and reduces poverty.
Second, it increases employability by preparing individuals for jobs that are in demand in the labour market. As Malaysia’s economy grows, there is an increasing need for a trained labour force, and TVET programmes can help people meet this need. As a result, there’s a better chance of landing a job and staying out of poverty.
Third, TVET not only gets students ready for wage labour but also promotes entrepreneurship. Several TVET programmes offer training in entrepreneurship and business management to empower individuals to start their own businesses and generate income. This may be an effective long-term plan to fight poverty.
Fourth, a wide range of individuals can access it, including those who might not have otherwise been able to pursue higher education. Being inclusive is essential for reducing poverty because it provides a different path for people to improve their abilities and financial opportunities.
Fifth, Malaysia is a diversified country with both urban and rural areas. TVET programmes can be tailored to the specific needs of different regions, which can lead to the creation of jobs in rural and underserved areas and encourage more balanced economic development. This reduces poverty by narrowing the income gap between rural and urban areas.
Ultimately, and perhaps most significantly, TVET contributes significantly to the reduction of poverty in Malaysia by giving individuals the knowledge and abilities needed to obtain employment, fostering entrepreneurship, promoting regional development, and ensuring inclusion. By investing in and expanding TVET programmes, Malaysia can effectively combat poverty and promote social stability, sustainable economic growth, and social development.
The world’s renewable energy grew at its fastest rate in the past 25 years in 2023, the International Energy Agency (IEA) reported Thursday in its first assessment since nations agreed in December on ambitious new targets to slow dangerous climate change.
The Paris-based agency said rapid growth of solar in China was the main driver as the world added nearly 510 gigawatts — enough to power nearly 51 million homes for a year — with Europe, the United States and Brazil also seeing record growth.
IEA Executive Director Fatih Birol said renewable energy is on course to increase by 2 1/2 times by 2030. That would fall short of the tripling that nations agreed on at last month’s annual United Nations climate talks in Dubai, but Birol said the goal is reachable. Increasing funds for clean energy in developing countries is the biggest challenge to getting to 11,000 gigawatts from the nearly 3,400 gigawatts of 2022, he said.
“Success in meeting the tripling goal will hinge on this,” he said.
Countries set a goal of limiting global warming to 1.5 degrees Celsius (2.7 Fahrenheit) at the 2015 Paris climate talks to avert the worst consequences of climate change. Earth is just below that limit, with scientists this week reporting 2023 was the hottest year on record and projecting that January will be so warm that a 12-month period will exceed the 1.5-degree threshold for the first time.
For the first time in nearly three decades of such talks, the final agreement in Dubai mentioned fossil fuels — coal, oil and natural gas — as the cause of climate change and said the world needs to be “transitioning away” from them. But it didn’t set any concrete requirements to do so.
The report forecasts that solar power and onshore wind energy deployment through 2028 is expected to more than double in the United States, the European Union, India and Brazil, compared with the last five years. The IEA expects 3,700 gigawatts of clean energy capacity to be added by 2028 across 130 countries, with solar and wind energy accounting for almost all of it.
China, already the global leader in renewable energy, will likely account for 60% of the new clean energy capacity that will become operational by 2028.
IEA researchers found that prices for solar components in 2023 declined by almost 50% year-on-year. They predict that cost reductions and fast deployment will continue in 2024 as manufacturing exceeds demand.
But IEA found that wind energy is facing more challenges, especially outside China, which has the world’s largest wind energy capacity. The agency cited issues including supply chain disruptions, higher costs and red tape preventing faster installations.
The report finds that the key challenges to clean energy growth in developed countries are policy uncertainties, fragile economic environments and insufficient investment in electricity transmission grids to accommodate greater shares of renewables.
The key challenges in developing countries are access to finance for installing renewable energy and the lack of strong governance and regulatory frameworks that would reduce risks and attract investments in clean energy.
Tripling by 2030 will also depend on countries speeding up permitting and building out transmission and storage infrastructure, said Sean Rai-Roche, a policy advisor at climate think tank E3G who has long tracked developments in clean energy.
“Governments and businesses need to act now to protect the planet for future generations,” Rai-Roche said. “We cannot afford to wait — action later is too late.” – AP
