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Datasonic Expects Robust 2024 As It Ramps Up Passport And i Kad Production

Datasonic Group Berhad in its recently concluded EGM stated that it had recorded a best-ever top-line performance and second-highest-ever bottom-line results at RM344.7 million and RM76.4 million.

“Forging ahead, we anticipate FY24 to remain challenging amid the elevated market ambiguities arising from ongoing macroeconomic issues. Nevertheless, we are resolute in pursuing our strategic plans with prudent management. The Group has identified promising areas of growth that we can capitalize on to further expand our business said Executive Deputy Chairman of Datasonic, Datuk Haji Abu Hanifah bin Noordin

The group noted that demand for passports is expected to remain on an upwards trend, and will be gradually ramping up the production of its manufacturing of polycarbonate data page and growing the number of Malaysian passports that is 100% made in Malaysia. Separately, the Group will also deploy foreign worker card (“i-Kad”) by this month and the immediate aim is to meet all the backlog and new iKad issuance in a timely manner.”

On balance, the prospects of Datasonic continue to be bright premised upon our strategic plans and healthy order book of RM339 million and look forward to a new chapter of growth for the Group.

The Group declared and paid total dividends of 2.0 sen per share in FY23, totalling RM56.7 million. This represents a dividend payout ratio of 74.2% based on RM76.4 million profit after tax and non-controlling interest (“PATNCI” or “net profit”).

Fitch Downgrade Puts Risk Appetite On The Back Foot

Some negativity was permeating across Asian equity markets mid-week thanks to Fitch downgrade news. 

Whilst not a game-changer, news that Fitch downgraded the US credit rating by a notch was enough to put risk appetite on the back-foot as evidenced by the red numbers across the board. 

Adding to the degree of caution exhibited across risk assets is the fact that US NFP data looms large at the end of the week. 

With markets remaining sensitive to interest rate outlooks, the NFP data has the potential to tilt Fed expectations for September one way or the other. 

Ahead of that, the ADP figures will be closely watched given that tightness in the labour market can slow the pace of disinflation. 

So overall, between the Fitch news and the looming NFP data there are some risk events circling which might be enough to cause some hesitation amongst investors. 

The Australian Dollar has been on the defensive in recent days. The slide began after Tuesday’s China Caixin Manufacturing data and was then exacerbated by the RBA’s interest rate hold. 

Last week’s CPI reading which showed inflation slowing from 7% to 6% from quarter to quarter gave the RBA the luxury of holding fire this month. But that’s not to say the RBA is finished with the current tightening cycle. 

The RBA is in the same boat as many other central banks – if the process of disinflation is not deemed quick enough then more interest rate hikes are lying in wait to speed up the process of returning to target inflation levels. 

In terms of the AUDUSD rate, it has fallen more than 1c over the last twenty-four hours on a combination of the weak China data, the RBA hold and a strengthening USD. 

The DXY surged above the 102.20 before experiencing a mild pullback on profit taking. This was despite some mixed US macro data. 

However, moves higher in the two- and ten-yearUS treasury yields underpinned the greenback strength, while the currency also benefitted from some safe-haven buying flows. 

Gold faces headwinds

Gold has been facing a headwind this week in the form of an appreciating USD. 

The precious metal did get a moderate boost from the US credit downgrade news to move back towards the US$1950 level however any further gains will likely require a pullback of the USD. 

Oil holds up 

Oil continues to hold up well despite the rising greenback, though this patch of USD strength we are witnessing is making further progress for the oil price harder to come by. 

A resilient US economy that looks a good chance of avoiding a recession combined with the promise of Chinese stimulus is keeping the oil market upbeat. 

Also, we heard some positive comments from the head of BP about the demand outlook. 

These comments added to the chorus of optimism heard from the big oil company execs over the past week, which is helping to calm concerns over demand levels over the rest of the year and heading into 2024. 

Meanwhile, over on the supply side, OPEC+ should be quite happy I would imagine given that the price has risen more than $10 over the course of the last month. 

Market commentary from Tim Waterer, chief market analyst at KCM Trade

Alan Walker To End His Walkerverse World Tour In Malaysia

The chart-topping “Faded” EDM artist Alan Walker is set to conclude his epic “WALKERVERSE” World Tour with a spectacular grand finale in Malaysia!

Organized by Star Planet, the “Walkerverse” World Tour Finale in Kuala Lumpur” will be held at the Axiata Arena Bukit Jalil on September 17th at 8pm. Tickets will go on sale on 9th August from 2pm!

The tour commenced last fall and has toured Europe, North America, and major cities in Asia. From sold-out shows to thunderous applause, each city on the tour witnessed the magic of Alan Walker’s music, bringing people together through the shared love of EDM. The tour has been a celebration of unity, with fans from diverse backgrounds coming together to immerse themselves in the euphoric journey that is the “Walkerverse” experience.

Renowned for his ability to craft high-energy records that have captured the hearts of his fans the world over, the Norwegian DJ and producer Alan Walker is truly a force to be reckoned with. With over 115 million followers across his social platforms, over 12 billion YouTube views, and a staggering 50 billion audio and video streams, Alan Walker arrived on the music scene in late 2015 with his debut hit single ‘Faded’, garnering over 1.4 billion Spotify streams and a massive 3.1 billion YouTube video views. The single also left him with a BRIT Awards nomination for Song of the Year and Alan has played over 650 headlining shows and festivals to date.

Tickets are priced between RM258 – RM788.

Apple Could Report Largest Q3 Revenue Drop Since 2016 As iPhone Sales Slows

Apple is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said.

The world’s most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6 percent drop in total quarterly revenue, according to Refinitiv – its steepest drop in third-quarter revenue since 2016.

IPhone sales likely fell more than 2 percent in the period, according to 24 analysts polled by Visible Alpha, compared with a near 3 percent increase a year earlier and a 1.5 percent rise in the quarter ended March.

The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms, Alphabet and Microsoft which have shown resilience in their cloud businesses and an uptick in digital ad sales.

“Apple is not immune to general macroeconomic trends and will continue to set the pace (for the smartphone industry) for quite some time,” said Bob O’Donnell, founder of TECHnalysis Research.

With details about the new iPhone 15 expected next month – which could sport the more universally accepted USB-C port on some models – iPhone sales could get a small nudge in the July-September quarter, said analysts, who predicted a mixed bag of results for the period.

Apple traditionally does not provide quarterly outlook, but analysts expect the company may elaborate how it is using AI to improve its upcoming products.

The company has so far avoided buzzwords like AI at its events, in a contrast with tech giants including Alphabet and Microsoft. Last month, Bloomberg News reported Apple has quietly built its own framework to create large language models known as “Ajax”.

“We expect Apple’s updated comments on its AI aspirations to be a focus,” analysts at Well Fargo wrote in a research note, adding that any commentary around the technology could boost the stock.

Apple’s shares have gained more than 50 per cent so far this year, compared with a nearly 37 per cent increase in the tech-heavy Nasdaq Composite.

IPHONE SLOWDOWN

Much of the weakness in iPhone sales is expected to come from the Americas, where revenue is set to fall 6 per cent, analysts said. Sales from China – Apple’s third-largest market – are expected to be flat due to an uneven economic recovery, though the company has fared better than Android rivals in the country.

Overall smartphone shipments to China declined 2.1 per cent in the second quarter, according to market research firm International Data Corp.

“Most investors feel a soft China could pose a risk to the numbers and further commentary, but Apple’s position in China is on a solid footing and the company is likely to see only a small, if any, decline in iPhone sales,” Piper Sandler analysts said.

“If there is any sales weakness from China, it is likely to be easily offset by strong sales momentum in India,” they added.

Mac and iPad sales are expected to fall by 10.6 per cent and 11.2 per cent, respectively, according to Refinitiv data.

But the services business – home to Apple’s App Store and audio and video streaming services – could be a bright spot thanks to an uptick in the ad market, some analysts said.

The business, which accounts for roughly a quarter of Apple’s total revenue, is expected to grow 5.7 per cent as it also benefits from price increases for iCloud subscriptions, though the pace is broadly similar to that in the preceding three quarters.

Reuters

Opposition Jealous Of Unity Government Success: Fahmi

The various successes achieved by the Unity Government during the seven months of governing the country has caused the opposition to be jealous, said Communications and Digital Minister Fahmi Fadzil.

He said although the government is still new, there is no denying the success of the initiatives implemented to help the people.

Fahmi, who is also Pakatan Harapan (Harapan) communications director, said because of their success, the opposition does not have the capital to attack the government and, instead, they harp on negative sentiments including touching on the issues of race, religion and royalty (3R).

“The success we can see now is that our inflation rate continues to decrease and now stands at 2.4 per cent.

“According to the Department of Statistics Malaysia (DOSM), the communications sector recorded a decrease in inflation for internet prices, which dropped to negative 3.6 per cent, meaning internet prices are getting cheaper,” he said at the Jelajah Perpaduan in Semenyih, Kajang last night.

Fahmi said that some stubborn opposition leaders continue to touch on negative sentiments or the 3R issue.

“Despite various reminders regarding campaigning ethics to all parties, including social media users, some are still playing up such issues,” he said.

As such, he reminded all parties, especially party leaders, to always be sensitive to and respect the laws and ethics of campaigning.

Mi Technovation Sues Edelteq, 5 Subsidiaries, 3 Employees Including Group CEO

The previous conflict between MI Technovation (MI) and Edelteq Executive Director and Group CEO Chin Yong Keong has intensified. On Monday (August 1), MI reported to the Bursa Malaysia that it had sued Edelteq and 5 subsidiaries, as well as 3 resigned employees, including Chin, Lee Kim Loon (Director of Edelteq Engineering Department) and Tan Joo Hung (shareholder).

MI’s board finds that the respondents have breached confidential information, violated copyrights and patents, conspired to injure others, and unlawfully interfered with trade, and seeks damages and injunctive orders.

Last Thursday (July 27), the company had obtained a search warrant granted by the Penang High Court, allowing its lawyers and independent experts to enter the respondent’s company premises and search for related items.

The above-mentioned search warrant came into effect on Monday (July 31), and the search is still ongoing. The company will issue a full announcement on the legal action to Bursa Malaysia. The Penang High Court has set next Monday (August 7) ​​as the end date for the search warrant.

Previously, Chin counterclaimed for defamation against the company for the company’s announcement to Bursa Malaysia Securities Berhad on 17 May 2023 and the summary write-up prepared by the company’s solicitors attached to the announcement. Chin also counterclaimed that the writ filed by the company was an abuse of process.

RBA’s Pause Isn’t The End Game

As already expected, the Reserve Bank of Australia (RBA) kept rates on hold today, defying consensus expectations. The Bank pointed out how higher interest rates are “working to establish a more sustainable balance between supply and demand in the economy” and opted for a pause to better assess incoming data. The new CPI forecasts now see inflation declining to 3.25% by the fourth quarter of next year and fall back to target by the end of 2025. This is probably a dovish signal, as it implies the current pace of tightening is appropriate to take inflation back to target in an acceptable time frame.

However, the RBA has shown elevated sensitivity to data, and I doubt this will change very soon: another high inflation read may well convince it to add a hike before the peak. My base case is still for one last 25bp increase to be delivered in September when electricity tariffs could deliver an inflation surprise.

The Aussie dollar may underperform other peers like the NZD and the Scandies until a bullish “pocket” emerges in September, should the RBA go ahead with one last hike. Still fighting for direction.

US dollar still fighting for direction

We have recently made the case for the dollar to stay “trapped” in a situation where FX volatility fails to pick up, leaving room for carry trades to keep supporting high-yielders and weigh on funding currencies. The greenback probably needs some compelling evidence against the soft-landing narrative in the coming days to break lower.

One data release that went slightly under the radar yesterday, but in our view contained key forward-looking information, was the Federal Reserve’s Senior Loan Officer Opinion Survey.

The survey pointed at a further tightening in US lending conditions and how both households and businesses are now warier about taking on additional borrowing. Given the centrality of credit flow to the US economy, this increases the probability of a faster return to target inflation.

Outside of the US, China continued to print disappointing data: the latest being July’s Caixin PMI manufacturing, which fell more than expected into contraction territory (49.2). This has set the stage for a risk-off-leaning environment in FX this morning, which can favour some modest dollar recovery into the US data releases and help DXY consolidate above 102.00, before facing harder data-related tests.

Market commentary and analysis from Luca Santos, currency analyst at ACY Securities

Banking Sector Registers Attractive Valuation With Sequential Improvement

CGSCIMB reaffirms their Overweight call on banks, predicated on potential re-rating catalysts of sequential improvement in net interest margin in 2Q-4Q23F and potential write-back of management overlay.

“We estimate every 10% write-back in management overlay would enhance our projected FY23-24F net profits by 1.7%,” said CGSCIMB in the recent Sector Note.

CGSCIMB’s sector top pick is RHB Bank due to its attractive valuation and dividend yield as well as potential increase in dividend payout. Potential downside risks for their sector rating would be a deterioration in loan growth and asset quality.

“We expect a pick-up in loan growth in 2H amid easing inflationary pressures, stable interest rates and a stronger MYR. Moreover, margin pressure is abating and should contribute to better interest margins for the sector in 2H23,” said Maybank Investment Bank in a recent report.

The banking industry’s loan growth moderated from 4.8% yoy at end-May 23 to 4.4% at end-Jun 23. This was mainly dragged by business loan momentum easing from 1.6% yoy at end-May 23 to 1% yoy at end-Jun 23. Meanwhile, household loan growth only inched down from 5.4% yoy at end-May 23 to 5.3% yoy at end-Jun 23.

“We are not overly concerned about the weakening of the loan growth as even if loan growth disappoints, we do not expect loan growth in 2023 to be far below our projected 4- 5%, and every 1% pt cut in our loan growth projection would only lower our CY24F net profit forecasts by 0.8%, based on our estimate,” said CGSCIMB.

While CGSCIMB is negative on the moderation in loan growth, the positive observation in Jun 23 was the mom drop of RM796.5m in gross impaired loan (GIL), the largest mom decline in 1H23.

This lowered the banking industry’s GIL ratio from 1.8% at end-May 23 to 1.76% at end-Jun 23. Based on the latest trends, CGSCIMB thinks that GIL ratio should peak soon.

“Hence, we see minimal risk of GIL ratio surpassing our end-2023 projection of 2%. We were positive on the 35.7% qoq fall in the sector’s loan loss provisioning (LLP) to RM937.6m in 1Q23,” said CGSCIMB.

It is even more encouraging that the LLP would decline further in 2Q23F, deduced from the massive RM1bn reduction in the banking industry’s total provision in 2Q23, compared to a decrease of RM134.1m in 1Q23.

CGSCIMB thinks this could be partly due to the write-back of management overlay by some banks, which is the major investment theme for banks.

MOH Unions Express Strong Support For Efficient Service Delivery, Collaborative Approach

Some 22 unions under the Health Ministry have expressed their support and approval for the direction set by the ministry as it was crucial to ensure an efficient and high-quality service delivery system.

Following a convention here last week that involved the various unions, the Joint Council of Presidents and Secretary Generals of the Health Ministry Workers’ Union (MAPSU) issued a joint statement that it was fully in support of the ministry’s efforts.

Its newly elected president Ajulahin Japin said in the statement that their decision was in line with the MADANI Government concept led by Prime Minister Datuk Seri Anwar Ibrahim.

He said the ministry, led by Dr. Zaliha Mustafa, emphasised on continuous consultation and engagement sessions with ministry employees, particularly those responsible for policy implementation.

“A harmonious relationship between employers and workers is crucial for delivering an efficient and quality system.”
The convention was held on July 26 and 27 in Melaka and was attended by 52 presidents and secretary generals of various workers’ unions and it also involved the top management of the ministry. It was inaugurated by MOH (Ministry of Health)’s Deputy Secretary-General (Finance) Datuk Seri Norazman Ayob.

MAPSU represents nearly 80,000 MOH employees across 22 unions and it hoped the Health Minister and the MOH top management would pay more attention to all service schemes under the ministry.

Ajulahin said the ministry was also proactive in prioritising welfare issues and open to any suggestions put forth by the union to foster a collaborative effort in line with the aspirations of the people.

The union acknowledged that MOH, with its 119 employment schemes, naturally faced various challenges that the union aims to address. It also appreciated the readiness of MOH to engage directly with workers at the grassroots level.

Ajulahin, who is from the Sabah Medical Services Union, thanked MOH for initiating the convention and hoped it would become an annual event as it strengthened the relationship and understanding between the union and the ministry.

Ringgit Opens Lower Against The Greenback

The ringgit opened lower against the US dollar in early trade today due to the lack of interest.

At 9.07 am, the local note decreased to 4.5250/5285 against the greenback compared with 4.5175/5200 at Tuesday’s close.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said that the US Dollar Index (DXY) initially rose to a high of 102.41 before retracting to 102.30 points yesterday.

“Simultaneously, Fitch Rating downgraded the United States government’s AAA rating to AA+, citing concerns over weak governance and prolonged debt ceiling negotiations as key factors.

“Despite these developments, the conflicting data presents a mixed signal, as a sovereign rating downgrade typically corresponds to a weaker US currency,” he told Bernama, adding that the MYR/USD may move within a narrow range of RM4.51-RM4.52 today.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

It dropped against the euro to 4.9766/9804 from 4.9584/9612 at Tuesday’s close but firmed against the Japanese yen 3.1623/1650 from 3.1666/1686 yesterday and improved vis-a-vis the British pound to 5.7839/7883 from 5.7892/7924 previously.

At the same time, the local unit was traded mixed against other Asean currencies.

CGSCIMB Recommends Hartalega, Kerjaya Prospek For Long Term

On Monday, the Hartalega Holdings stock closed above the 200-day Exponential Moving Average (EMA) for the first time since mid-June.

“It pulled further away from the said moving average yesterday with its third consecutive white candle,” said CGSCIMB.

Buying interest appears to be picking up after a month-long of consolidation. The golden cross of the 20-day over the 50-day EMAs may suggest that a short-term uptrend may be underway, supported by the higher lows sequence from the RM1.88 low.

Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have hooked up further, suggesting a positive momentum.

“We think that aggressive traders may want to go long now or accumulate on a pullback, with a stop-loss set at RM2.03,” said CGSCIMB.

On another note, Kerjaya Prospek Property’s stock has finally broken out of the RM0.71 resistance level yesterday after multiple attempts over the past month.

Yesterday’s white bullish candle also marked its 52-week high on the back of stronger trading volume. The rising EMAs, coupled with the higher highs and higher lows formation since its 9-month long rectangle breakout, may fuel the current bullish move in the near term.

Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are still pointing higher, keeping the bullish momentum intact. CGSCIMB recommends aggressive traders to go long now or accumulate on a pullback, with a stop-loss set at RM0.69.

Hang Seng Index Futures: Struggling To Stay Above 20,000-Pt Support Level

The HSIF’s positive momentum took a breather yesterday, with the index retreating 175 pts to close at 20,028 pts.

RHB Retail Research, in a note today (Aug 2), said it began yesterday’s session at 20,204 pts. At one point, it posted a movement surge to test the day’s high of 20,404 pts on strong momentum.

However, it pulled back in the afternoon to close at 20,028 pts. The index fell 136 pts during the evening session, and was last traded at 19,892 pts.

For now, the 20- and 50-day SMA lines have intersected to form a Bullish Crossover, suggesting that the trend is turning bullish – RHB expects further upside in the upcoming sessions.

Meanwhile, strong support has formed at 19,250 pts. Unless the 19,250-pt support level is breached, the overall technical setup will remain bullish. For now, RHB retains their positive trading bias.

Factory Expansion, New Products Among Catalysts For Supercomnet

Supercomnet Technologies Bhd (SCOMNET) engages in the production of wires and cables for medical devices, electrical appliances, consumer electronics and automotive components.

According to Malacca Securities in the recent Technical Focus Report, Scomnet counts New York Stock Exchange-listed Edwards Lifesciences Corp and Denmark-based Ambu as its two main customers, both whom have business dealings for more than 10 years on average.

“Moving forward, SCOMNET will continue to roll out new products such as the mass production of nano-medicine therapy device sometime towards end-2023/early-2024 in bid to sustain revenue growth. Meanwhile, the factory expansion to cater for new medical products is expected to see commissioning in 4Q23,” said Malacca Securities.

Meanwhile, the Securities Commission has given the greenlight for SCOMNET to transfer its shares and warrants from the ACE Market of Bursa Malaysia to the Main Market. The move is a testament to the group’s financial track record and allows greater participation from institutional players.

“Technically, price has staged a downturn since end-2022 before finding stability in June 2023. After multi-months of correction, price has demonstrated signs of recovery in recent weeks to close above daily exponential moving average 120,” said Malacca Securities.

Manufacturing Activity To Remain Weak On Poor Global Demand Conditions, Says Kenanga IB

Malaysia’s Manufacturing Purchasing Managers’ Index (PMI) remained subdued in July (47.8; Jun: 47.7), indicating  a weak start for the 3Q23, though the index was slightly higher compared to the previous month, it remained at contraction level (below the neutral level: 50.0) for the eleventh consecutive month or since September 2022.

Kenanga Investment Bank weighed in today (Aug 2) on the matter stating the weakness in the manufacturing industry is primarily  attributed to weak global demand conditions.

There exist subdued demand conditions amid weak client  confidence, the bank’s economic viewpoint report stated, which led to a slowdown in output production where new orders eased sharply since January 2023 due to a slowdown in demand which moderated markedly since January 2023.

Similarly, new export orders moderated further and at the fastest rate since May 2020. And, Consequently, output levels fell for the twelfth straight month but at the same pace seen in May and June, as production volumes were scaled back.

Kenanga said cost pressures persist amid exchange rate weakness where input costs accelerated for the fourth month in July, reaching the highest since February.

This was associated with rising raw material prices amid weaker local currency, leading to higher prices for imported items.

Nevertheless, output prices were relatively unchanged, with some firms slashing selling prices to stimulate demand.

Business sentiments were softened, but the outlook remained positive where sentiment was relatively muted, but manufacturers remained optimistic that demand conditions would normalise  over the coming 12 months, as reflected by the 25th straight month of optimism for future output. 

Employment continued to fall as firms scaled back hiring due to the non-replacement of voluntary leavers. While, manufacturing conditions among major economies deteriorated in July.

In the U.S. (49.0; Jun: 46.3), flash manufacturing PMI was up to a three-month high but remained in the contraction level, reflecting a persistent deterioration in the manufacturing sector due to weak demand conditions.

In China (49.2; June: 50.5), the Caixin Manufacturing PMI fell below the neutral level for the first time in three months,  indicating a struggling growth momentum amid soft global demand.

Kenanga IB, in this light, maintains their 2023 GDP growth forecast at 4.7% (2022: 8.7%) citing the weaker PMI reading in July is in line with their expectations that the manufacturing condition will remain weak in the 3Q23 and would potentially spill over towards the end of the year due to the global economic slowdown and  the waning lower base effect recorded last year.

This is expected to weigh on the 3Q23 GDP growth outlook, which Kenanga IB forecasts to moderate sharply to 3.4% from an estimated 6.0% in the 2Q23 (1Q23: 5.6%). 

Kenanga IB also expects domestic demand to remain resilient and support overall growth. This is mainly due to the continued recovery in the tourism-related subsector largely backed by the resumption of international tourism and the steady labour market condition, as  reflected by the lower unemployment rate as well as a decent increase in household income.

However, the bank acknowledges the lingering downside risk to the growth outlook, mainly coming from the external sector.

Strategies for a Cyber-safe Elections Period

Last year, Malaysia suffered multiple cyber attacks, including personal data theft of 22.5 million from a national registry and payment gateway data breach. In the same year, hackers broke into a payslip system, extracting nearly two million payslips and tax forms, stealing up to 188.75 gigabytes of data.  Recently, an insurance group has confirmed that two of its local subsidiaries have been affected by the MOVEit zero-day vulnerability exploit. 

In Nov 2020, it was reported that a data breach had allegedly occurred involving the EC’s database, where the personal details of 800,000 voters were leaked. While not proven, the allegation and a string of other data breach issues have underlined the urgency to mitigate cyber risks as soon as possible before the state election starts.

The upcoming state election also presents a unique opportunity for cybercriminals to tailor their attack methods based on political campaigns, platforms, and candidates’ (as well as voters’) behaviors. There are mainly three types of attacks that may affect the period:

  • Cyber hacktivism: Attacks focusing largely on persuasion or dissuasion to shift, stop, or silence a political group or message. Recently evolved to deepfake videos with the advancement of AI capabilities, commonly used to smear and shame candidates, disseminate unethical propaganda, and spread fake news.
  • Traditional cyberattacks: Attacks are carried out to secure financial gain by leveraging stolen data. Most commonly seen as URL phishing and or SMS phishing, these require comprehensive endpoint protection and high security awareness
  • Identity Theft: Commonly identified as alleging improper use of identity cards. With the available national identity leaked on the dark web, it is easier for unethical parties to purchase and misuse the identity to destroy the state election campaigns. 

In ensuring a cyber-safe election period, there are a couple of solutions and recommendations that the government can implement to reduce cybersecurity risks. These include: 

  • Improve Response Times with Analytics and Automation
    • New forms of threats can evolve in a matter of minutes. The system needs to have the agility and ability to keep up with the latest malware and exploits, and to also detect and automatically prevent the risks across networks, clouds, and endpoints, within as few as five minutes.
  • Enforce Zero Trust Network Access (ZTNA) 2.0 for Networks Housing Critical Infrastructure
    • Zero Trust is a framework whereby, by default, all users are denied network access. This means securing every part of the access route with powerful next-generation tools that detect and thwart attacks. 
    • Implementing ZTNA 2.0 allows election officials to limit the attack surface by isolating internal network segments that house election data, to have continuous trust verification and security inspection, as well as strict control on legitimate employees, applications, and traffic that can access the segment. 
  • Protect Critical Endpoints
    • During the election period, extra protection must be added to numerous devices and operating systems, such as the tools storing voters’ data, as these are considered critical endpoints. A multi-method approach to block exploits, ransomware, malware, and other types of attacks also needs to be implemented. 

In addition, prospective voters need to protect themselves against cyberattacks. Some steps that individuals can implement include:

  • Think before clicking. Never click embedded links within an email, especially if the sender’s authenticity is questionable. 
  • Watch out for scare tactics. Phishers often employ scare tactics, threatening to disable an account or delay services until new or updated information is provided. 
  • Ignore unprofessional emails. Fraudulent emails are typically personalized and addressed directly to the individual; while real, authentic emails from political groups, financial organizations, or other similar businesses, will typically reference the specific details of a given transaction or account.
  • Go directly to the source. Always be wary of emails or SMS requesting confidential information, particularly requests leveraging an embedded form or a link to an unknown site. 
  • Beef up security. Block these attempts from ever entering the network in the first place with an automated, prevention-first, platform approach to cybersecurity.

With the State Election just around the corner, cybersecurity has become more important than ever. Political parties, candidates, the government, and even prospective voters need to realize that cyber criminals are looking to gain from all sides, and that everyone is susceptible to cyberattacks. While there is still time before the elections fully begin, both individuals and organizations must start focusing on the security of their data. Robust cybersecurity measures need to be put in place, and cyber-safe practices need to be implemented as we gear up for a historical period in the country.  

By Lim Suk Hua, Country Manager, Palo Alto Networks Malaysia

Enovix To Establish A Cutting Edge Next Gen Battery Plant In Penang

Enovix Corporation an advanced silicon battery company and YBS International Berhad have signed a Manufacturing Supply Agreement to establish a cutting-edge next-generation battery manufacturing facility in Penang Science Park.

Jackie Yong Chan Cheah, CEO of YBS International Berhad, expressed, “Enovix has an exciting battery technology. We believe Enovix will become a market leader and we look forward to supporting the company’s goals and sharing in its growth and success.”

Ajay Marathe, COO of Enovix Corporation, said, “We’re thrilled to announce this significant milestone in our journey to scale. In addition to working with YBS, we look forward to collaborating with MIDA, the Northern Corridor Economic Region, and InvestPenang to secure investment incentive which will support our long-term goals in Malaysia. Malaysia, and especially the Penang region, is rich with semiconductor-trained engineers who have a manufacturing-excellence mindset. We’re pleased to advance our presence in the region to support our rapid growth.”

As part of the MSA, YBS, under the direction of Enovix, will provide the building and capital for equipment and labour for Fab2 and the Gen2 Autoline 1. Enovix announced earlier this year that it established Enovix Malaysia Sdn. Bhd. In addition, the company has hired over 30 people in Malaysia including the two leaders announced in March this year.

Trump Indicted For Efforts To Overturn 2020 Election And Block Transfer Of Power

Former U.S. President Donald Trump was indicted on felony charges Tuesday for working to overturn the results of the 2020 election in the run-up to the violent riot by his supporters at the U.S. Capitol, with the Justice Department acting to hold him accountable for an unprecedented effort to block the peaceful transfer of presidential power and threaten American democracy.

The four-count indictment, the third criminal case against Trump, provided deeper insight into a dark moment that has already been the subject of exhaustive federal investigations and captivating public hearings. It chronicles a months-long campaign of lies about the election results and says that, even when those falsehoods resulted in a chaotic insurrection at the Capitol, Trump sought to exploit the violence by pointing to it as a reason to further delay the counting of votes that sealed his defeat.

Even in a year of rapid-succession legal reckonings for Trump, Tuesday’s criminal case, with charges including conspiring to defraud the United States government that he once led, was stunning in its allegations that a former president assaulted the “bedrock function” of democracy. It’s the first time the defeated president, who is the early front-runner for next year’s Republican presidential nomination, is facing legal consequences for his frantic but ultimately failed effort to cling to power.

“The attack on our nation’s Capitol on Jan 6, 2021, was an unprecedented assault on the seat of American democracy,” said Justice Department special counsel Jack Smith, whose office has spent months investigating Trump. “It was fuelled by lies, lies by the defendant targeted at obstructing a bedrock function of the U.S. government: the nation’s process of collecting counting and certifying the results of the presidential election.”

Trump was the only person charged in Tuesday’s indictment. But prosecutors obliquely referenced a half-dozen co-conspirators, including lawyers inside and outside of government who they said had worked with Trump to undo the election results. They also advanced legally dubious schemes to enlist slates of fake electors in seven battleground states won by Democrat Joe Biden to falsely claim that Trump had actually won them.

The indictment accuses the defeated president and his allies of trying to “exploit the violence and chaos” by calling lawmakers into the evening on Jan. 6 to delay the certification of Biden’s victory.

It also cites handwritten notes from former Vice President Mike Pence that give gravitas to Trump’s relentless goading to reject the electoral votes. Pence, who is challenging Trump for the GOP presidential nomination, declined overtures from a House panel that investigated the insurrection and sought to avoid testifying before the special counsel. He appeared only after losing a court fight, with prosecutors learning that Trump in one conversation called him “too honest” to stop the certification.

Trump is due in court Thursday, the first step in a legal process that will play out in a courthouse situated between the White House he once controlled and the Capitol his supporters once stormed. The case is already being dismissed by the former president and his supporters — and even some of his rivals — as just another politically motivated prosecution.

Yet the case stems from one of the most serious threats to American democracy in modern history.

The indictment centers on the turbulent two months after the November 2020 election in which Trump refused to accept his loss and spread lies that victory was stolen from him. The turmoil resulted in the riot at the Capitol, when Trump loyalists violently broke into the building, attacked police officers and disrupted the congressional counting of electoral votes.

In between the election and the riot, Trump urged local election officials to undo voting results in their states, pressured Pence to halt the certification of electoral votes and falsely claimed that the election had been stolen — a notion repeatedly rejected by judges. Among those lies, prosecutors say, were claims that mote than 10,000 dead voters had voted in Georgia along with tens of thousands of double votes in Nevada. Each claim had been rebutted by courts or state or federal officials, the indictment says.

Prosecutors say Trump knew his claims of having won the election were false but he “repeated and widely disseminated them anyway — to make his knowingly false claims appear legitimate, to create an intense national atmosphere of mistrust and anger, and to erode public faith in the administration of the election.”

The indictment had been expected since Trump said in mid-July that the Justice Department had informed him he was a target of its investigation. A bipartisan House committee that spent months investigating the run-up to the Capitol riot also recommended prosecuting Trump on charges, including aiding an insurrection and obstructing an official proceeding.

The indictment includes charges of conspiring to defraud the U.S., conspiring to obstruct an official proceeding and violating a post-Civil War Reconstruction Era civil rights statute that makes it a crime to conspire to violate rights that are guaranteed by the Constitution — in this case, the right to vote.

The mounting criminal cases against Trump are unfolding in the heat of the 2024 race. A conviction in this case, or any other, would not prevent Trump from pursuing the White House or serving as president, though Trump as president could theoretically appoint an attorney general to dismiss the charges or potentially try to pardon himself.

In New York, state prosecutors have charged Trump with falsifying business records about a hush money payoff to a porn actor before the 2016 election. The trial begins in late March.

In Florida, the Justice Department has brought more than three dozen felony counts, accusing him of illegally possessing classified documents after leaving the White House and concealing them from investigators. The trial begins in May.

Prosecutors in Georgia are investigating efforts by Trump and his allies to reverse his election loss to Biden there. The district attorney of Fulton County is expected to announce charging decisions within weeks.

As part of his federal investigation, Smith’s team cast a broad net, with his team of prosecutors questioning senior Trump administration officials, including Pence, before a grand jury in Washington. Prosecutors also interviewed election officials in Georgia, Wisconsin, Michigan and other battleground states won by Biden who were pressured by the Trump team to change voting results.

Rudy Giuliani, a Trump lawyer who pursued post-election legal challenges, spoke voluntarily to prosecutors weeks before the indictment. Giuliani was not cited by name in the indictment, but appears to match the description of one of the co-conspirators. A spokesman for Giuliani said Tuesday night that Trump had a “good-faith basis” for the actions he took.

Attorney General Merrick Garland last year appointed Smith, an international war crimes prosecutor who also led the Justice Department’s public corruption section, as special counsel to investigate efforts to undo the election as well as Trump’s retention of classified documents at his Florida home, Mar-a-Lago. Although Trump has derided him as “deranged” and called him politically motivated, Smith’s past experience includes overseeing significant prosecutions against high-profile Democrats.

The Justice Department’s investigations began well before Smith’s appointment, proceeding alongside separate criminal probes into the rioters themselves. More than 1,000 people have been charged in connection with the insurrection, including some with seditious conspiracy. – AP

Southern Score Builders Sustained By Substantial Outstanding Orderbook

Southern Score Builders (SSB8) came into being in Nov 2022 via the reverse takeover (RTO) of G Neptune Bhd by privately-owned Class G7 contractor Southern Score Sdn Bhd with a profit guarantee of RM80m over 2022-2024.

“It focuses mainly on high-rise residential building jobs in Kuala Lumpur, and civil works, such as road and drainage, and water reticulation and sewerage package works,” said Kenanga Research (Kenanga) in a recent report.

Its first construction project was in 2015, as a turnkey contractor for the development of PR1MA Jalan Jubilee. As of Mar 2023, it has so far completed a total project value of RM738m, of which RM533.5m were from a related party –Platinum Victory.

“Meanwhile, it has current outstanding orderbook of RM638.5m with tender book of RM634.0m. This should keep them busy for the next 2-
3 years,” said the research house.

SSB8 registered strong gross margin of 20% over FY19-FY21 (FYE Dec) and post the RTO, 19%-24% between 1QFY23 and 3QFY23. This was primarily due to its asset-light construction management model. It outsources construction work to reliable subcontractors at highly competitive rates.

The procurement of building materials in bulk, backed by its strong balance sheet puts it in a strong position to ask for significant
discounts from suppliers.

SSB8, through its 35%-owned associate TCS SS Precast Construction Sdn Bhd (TSPC), is currently exploring project viability and economic benefit of setting up IBS manufacturing plant in Batu Caves.

“SSB8 has already earmarked RM21.8m of the proceeds raised from the RTO exercise for this IBS venture,” said Kenanga.

Meanwhile, in Jun 2023, SSB8 signed MoU with MCC Overseas (M) Sdn Bhd and Guangdong Bright Dream Robotics Co. Ltd with the intention to form a partnership to implement and develop robotic construction technologies in Malaysia. All this would help to improve its profit margin in the future should it materialises.

Great Potential Ahead For Kerjaya Prospek With Huge Contract Wins

Kerjaya Prospek (KERJAYA) has been awarded two related-party contracts worth a total of RM46m from E&O’s indirect subsidiaries, RM24.7m from Eastern & Oriental Express Sdn Bhd for earthworks for a proposed mixed development (known as Elmina) located at Section U17, Shah Alam, and, RM21.3m from Persada Mentari Sdn Bhd for infrastructure works for the proposed Seri Tanjung Pinang Phase 2A Development in Penang.

“The completion timeline for the first contract is expected to be 17 months from the scheduled commencement date of 01 Oct 2023 while the second contract is anticipated to be completed within 12 months from 18 Sep 2023,” said Kenanga Research (Kenanga) in the recent Company Update Report.

Kenanga is positive on this win which brings its year-to-date total wins to RM984m or 66% of Kenanga’s FY23 target and firmly on track to hit their FY23F full-year job win assumption of RM1.5b. It also raised its outstanding order book to RM4.4b. Kenanga expects these contracts’ profit after tax margin to be 10%.

“Currently, its tender book stands at RM1.5b−RM2.0b from building/reclamation jobs from its sister companies, MNC industrial warehouse/factories alongside its JV with Samsung, and third-party building jobs in the Klang Valley,” said Kenanga.

Kenanga maintains a Target Price of RM1.50 and maintains the Outperform rating. KERJAYA’s focus is on the high-rise building sector currently weighed down by an oversupply in the office and residential segments.

Kenanga continues to like KERJAYA for its innovative construction solutions and lean cost structure that translate to above-average margins, its hands-on management team and track record of strong execution, and its ability to consistently win external jobs and the availability of job orders from related parties.

Risks to Kenanga’s call include further deterioration in the prospects for building jobs, rising input costs, and project cost overrun and
liabilities arising from liquidated ascertained damages.

Soft Space, Hong Leong Bank, JCB Expand JCB Card Acceptance In Malaysia

Soft Space and JCBI recently signed an agreement to enable Soft Space to work with local acquirers, such as HLB, to promote JCB Card acceptance in Malaysia.

Sofitel Kuala Lumpur Damansara is one of HLB’s merchants that has begun accepting JCB Card payments. 

“As Japanese tourist arrivals in Malaysia begin to ramp up again, we are pleased to be able to enable and promote cross-border payments between Japan and Malaysia via our partners,” said Joel Tay, CEO of Soft Space. “This merely represents a first step in our ambition to roll out similar agreements in Southeast Asia, boosting JCB Card acceptance and riding on the wave of increasing contactless card payments in the region.”

“We decided to expand the collaboration with another global leader who shares similar values in enhancing user experience through state-of-the-art technological application,” said Yoshiki Kaneko, President and CEO of JCB International Co., Ltd.

According to Andrew Jong, Managing Director of Personal Financial Services at HLB, this partnership with JCB and Soft Space signifies the Bank’s commitment to providing financial products and services that are centred around the needs of both its merchants and their customers.  

“With an influx of tourists and expats coming from Japan into Malaysia, the option to accept JCB Cards will ensure convenience for its cardholders and provide businesses with an additional opportunity to capture more tourists and grow their business. This partnership will enable us to serve the customers who are increasingly going cashless as well as help our merchants increase their sales and customer transaction value.” 

The agreement showcases the partnership progress between JCB and Soft Space since the former investment in the fintech in January 2022. This includes a series of business collaborations that are aimed at leveraging on Soft Space’s fintech-as-a-service business model, technology and regulatory knowhow, and JCB’s global recognition, vast alliances and brand reach.