GLOVE BULLS REGAIN STRENGTH p3

ADVERTISING GROUP SEEKS SST WAIVER FOR SURVIVAL p4

W E D N E S DAY, J U N E 1 7 , 2 0 2 0 w w w. t h e e d g e m a r k e t s. c o m
ISSUE 2/2020

CEOMorningBrief HOME: Green Packet buys e-KYC firm in bid to be full-fledged digital bank p6
Isa Samad acquitted of CBT, ordered to enter defence on nine graft charges p11-p12
WORLD: Virus-hit Beijing tightens outbound travel; Shanghai demands quarantine p17

Is this a
liquidity-driven

BULL TRAP? Report on Page 2.

This digital copy is brought to you by

 W E D N E S DAY J U N E 1 7 , 2 0 2 0 2 THEEDGE CEO MORNING BRIEF

the edge ceo morning brief published by publisher +

. Ho Kay Tat
ceo

Read from desktop or mobile device. editor - in - chief

. Azam Aris
chief commercial officer . Sharon Teh
You can print in A4 to read. Set print (266980-X) chief operating officer . Lim Shiew Yuin
mode to fit or shrink oversize page. editors . Kathy Fong . Jenny Ng .
. 603-77218000
tel
Tan Choe Choe . Lam Jian Wyn
Level 3, Menara KLK, 1 Jalan PJU 7/6,
to get on emailing list Mutiara Damansara, 47810, Petaling Jaya, to contact editors : eeditor@bizedge.com
ceomorningbrief@bizedge.com Selangor, Malaysia to advertise : advertising@bizedge.com

H O M E

Is this a liquidity- Performance of Asian major bourses

driven bull trap? -20.84

% Change YTD
Jakarta Composite Index
-19.62 Philippines PSEi
BY LAI YING YI -17.25 Straits Time Index
theedgemarkets.com -13.6 Hang Seng
-13.46 Thai SET
KUALA LUMPUR (June 16): Bursa Ma- -4.54 Nikkei 225
laysia is among the top five best-perform- -4.47 FBM KLCI
ing stock markets in Asia, judging by the -4.05 Taiwan TAIEX
benchmark index performance. -3.88 Shanghai Composite
The FBM KLCI has rebounded 24% -2.71 KOSPI
from the trough of 1,219.72 points in
-25 -20 -15 -10 -5 0
mid-March to 1,571.71 points today. The
benchmark has dropped 4.47% year to
date, which is considered good given that BLOOMBERG

most regional bourses are recording dou-
ble-digit drops. Not to be forgotten is the
fact that there are already indications that
Malaysia is likely to see twin deficits this
year — both fiscal and trade. In short, the
economic growth prospects are not really
rosy, and do not augur well for corporate
earnings.
This disconnect between the stock mar-
ket and its underlying economic funda-
mentals has left many investors perplexed.
Most analysts have attributed the stellar
stock market performance so far to being
liquidity-driven, since governments and
central banks worldwide have unveiled
massive fiscal and monetary measures at
unprecedented speed and scales, since
the start of the global market meltdown
in March.
The US Federal Reserve’s (Fed) assets
have jumped by nearly 71% or US$3 tril-
lion in the past three months alone, from
less than US$4.2 trillion at end-February
to US$7.1 trillion as at end-May.
In contrast, it took more than six years,
from August 2008 to November 2013, for
the Fed to expand its balance sheet by a
similar amount — from US$0.9 trillion
to US$3.9 trillion — after the 2008 global
financial crisis.
Back home, Bank Negara Malaysia has
aggressively cut its overnight policy rate
by 100 basis points in less than six months
to 2% — the lowest in a decade. At the
same time, the central bank has reduced
the statutory reserve requirement (SRR)
and allowed principal dealers to recog-
nise Malaysian Government Securities
and Malaysian Government Investment
Issues as part of their SRR compliance.
This added more liquidity to the system,
which further compressed bond yields.
These measures effectively rendered
proceeds from fixed income securities and
deposits unappealing. Consequently, in
a nutshell, there is money sitting around
seeking better returns.
And with little investment alternatives
left, this has prompted the idle cash to
turn to the stock market, where there have
been bargains galore after the global rout
in the first quarter battered prices down
to decade-low valuations.
The record-breaking trading volume
and trade value are evident of the influx
of investment money into the local bourse.
Besides local institutional funds, retail par-
ticipation has also surged.
The market is at least six months
ahead
For the equity bulls, it is not hard to fath-
om why there is a strong rally, as the mar-
ket is always at least six months ahead of
fundamentals.
Lim Tze Cheng, head of research at
EquitiesTracker Holdings Bhd, told th-
eedgemarkets.com that investors are al-
ready looking beyond 2020.
“Stock markets are all about [exceed-
ing or missing] expectations,” said Lim.
The collapse of share prices during the
global rout, he said, had factored in the
worst-case scenario, which might not pan
out. This explains the strong market re-
bound, he said, adding that he sees data
indicating more upside surprises in the
coming months.
Areca Capital Sdn Bhd chief executive
officer Danny Wong Teck Meng concurred
J U M P TO PAGE 3
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Glove bulls regain
strength
BY WONG EE LIN
theedgemarkets.com
KUALA LUMPUR (June 16): The glove
bulls were charging ahead again just when
some investors were pondering if the rally
was losing steam given the fierce selldown
yesterday.
Comfort Gloves Bhd was leading the
pack. Its share price climbed nearly 11%
or 28 sen to RM2.85. Careplus Group
Bhd leapt 7.87% or 10 sen to RM1.37,
while Supermax Corp Bhd jumped
6.55% or 45 sen to RM7.32.
Big boy Top Glove Corp Bhd was the
top gainer on the FBM KLCI, gaining
5% or 76 sen to RM15.96, while Har-
talega Holdings Bhd grew 3.08% or 36
sen to RM12.04, while Kossan Rubber
Industries Bhd was marginally higher by
gaining 0.49% or four sen to RM8.23.
The renewed buying interest in glove
makers helped lend support to Bursa Ma-
laysia Healthcare Index, which emerged
as the second-biggest best-performing
index among the other sector indices and
was up 68.3 points or 3.09% to 2,276.4
points.
Affin Hwang Investment Bank Bhd
analyst Ng Chi Hoong said the research
firm still has a positive view on the sec-
tor, as he believes that earnings for the
sector have yet to peak.
“We are expecting higher earnings (net
profit) in the second half of 2020, as sell-
FROM PAGE 2
that the market rally reflected that
prospects ahead could be better than
expected.
Wong also pointed out that one of
the main factors behind the influx of in-
vestment money into the stock market
is the ungratifying risk-reward profile in
the bond market.
Both Lim and Wong expect catch-up
plays among laggards to transpire later.
However, Wong warned of heightened
volatility risks in the short term. As such,
he advised investors not to get overex-
posed to a single sector.
V-shape recovery a wishful thinking?
MIDF Research strategy head Syed Mu-
hammed Kifni Syed Kamaruddin, how-
ever, has an opposing view. He believes
that the unfolding reality may differ from
the scenario that the liquidity-driven
3 THEEDGE CEO MORNING BRIEF
H O M E
Buying interest in glove counters renewed after recent selldown
(%)
10.89
Percentage change on June 15
12
9 7.87
6 5.00
3 0.49
0
-3
-6
-9
-12
-15 -12.29 -13.01
Comfort Gloves Careplus
BLOOMBERG
market has currently priced in.
The initial economic issue that is
deemed just a liquidity problem will soon
become more a serious solvency issue, as
more defaults among both households
and businesses are expected.
According to him, the prevailing buoy-
ant stock market valuations imply a san-
guine outlook on the Covid-19 situation,
and that the domestic economy is slated
for a V-shape recovery with minimum fall-
out for both corporates and consumers.
That, Syed Muhammed Kifni thinks,
is wishful thinking. “Without the Cov-
id-19 vaccine, the economic consequence
of social-distancing rules on consumption
and investment would remain a drag to
output revival and growth in the fore-
seeable future.”
He highlighted that there are already
emerging signs of tightening investment
by businesses and purse-string pulling
Percentage change on June 16
6.55
3.08
-6.71
-10.06 -8.80
-13.15
Supermax Top Glove Hartalega Kossan
ing prices continue to be on the rise,” Ng
told theedgemarkets.com.
Moreover, Ng believes that demand
will remain robust, given that new cases
of Covid-19 are still on the rising trend.
“Apart from that, as more economic
activities open up in the world, it also
helps to drive demand for gloves for the
usage in the non-medical segments, like
retail, F&B (food and beverages), among
others,” said Ng.
Until there is an effective vaccine that
is publicly available, he does not foresee
a drop in demand for gloves just yet.
TA Securities Holdings Bhd technical
analyst Stephen Soo concurred with the
bullish view. He believes that buying in-
terest in glove counters will remain keen
as concerns over the second wave of Cov-
id-19 infection heightens.
Also, Soo described the correction in
the market seen in the last two days as “a
blessing in disguise” after the strong rally.
among consumers. These will not help
fuel economic recovery.
He also does not believe it will be
plain sailing for the world economy. As
example, he cited how China — among
the earliest to reopen its economy after a
lockdown to contain the pandemic – has
abandoned its economic growth target
for 2020.
And now, there is mounting evidence
that there could be a second wave of in-
fections in China, which is seen as the
growth engine of the global economy.
So, he expects economic growth or
corporate earnings to deteriorate further,
with any post-lockdown monthly sequen-
tial jumps in data to quickly recede, after
companies have fulfilled some pent-up
demand.
Against such a backdrop, he expects
the equity market to face another wave
of selling pressure.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0 4 THEEDGE CEO MORNING BRIEF

H O M E

More losses seen

KUALA LUMPUR (June 16): Pos Ma- its unionised workforce and losses in the
laysia Bhd is expected to continue regis- postal services segment, losses are only

at Pos Malaysia
tering losses in the second quarter ending expected to continue moving forward.
June 30, 2020 (2QFY20) due to the move- “The courier business will continue to op-

with MCO
ment control order’s (MCO) impact on the erate in a competitive environment pressured
group’s businesses. by price and cost challenges.The group is con-

— analysts
Although the MCO has led to a busi-
ness volume surge in Pos Malaysia’s courier
service under the group’s postal segment,
Hong Leong Investment Bank Bhd analyst
Nazira Abdullah said in a note today that
earnings from this segment, which accounts
for 30%-35% of total revenue, will not be
able to offset losses from other operations
that were halted during the MCO.
“These include Pos’ commercial and
retail services, coupled with flight restric-
tion that impacted its aviation and interna-
tional segments. We expect Pos to register
continued losses in 2QFY20, owing to the
full brunt of the MCO.
“Moreover, due to low entry barriers of
e-commerce industry, as well as increasing
number of logistics players in the market
(with 116 players as at Mar 2020), we reck-
on that their margin will be compressed.
Furthermore, the recent tariff hike could fur-
ther deteriorate the mail volume with busi-
ness stepping up on cost-cutting measures
amid recessionary concerns,” Nazira said.
Yesterday, Pos Malaysia reported that its
1QFY20 recorded a net loss of RM49.22
million, on a revenue of RM558.53 million.
Kenanga Investment Bank Bhd analyst
Raymond Choo Ping Khoon, in another
note, wrote that given Pos Malaysia’s ina-
bility to close post offices, combined with
BY ARJUNA CHANDRAN SHANKAR
theedgemarkets.com
More losses seen at Pos Malaysia
on MCO — analysts.
tinuing with its efforts to manage cost, whilst
increasing operating efficiency,” Choo said.
RHB Investment Bank Bhd, meanwhile,
expects Pos Malaysia’s losses to be reversed
in 2HFY20 on business activity normal-
isation and strong growth momentum in
its courier segment.
However, its analyst Lester Siew said
the research house believes Pos Malaysia’s
aviation segment will remain under pres-
sure this year due to reduced air traffic.
“Meanwhile, the group’s tight liquidity po-
sition is expected to be alleviated with the dis-
posal of certain non-core assets, including its
Islamic pawnbroking business (Pos ArRahnu).
“We believe losses could widen in 2QFY20
(the second quarter) due to further revenue
shortfall during the extended MCO period.
On the other hand, this is expected to be
mitigated by a surge in courier volume, with
590,000 average daily parcels recorded in
April (+72% versus 1QFY20’s daily average
of 343,000), supported by 60% and 176%
increases in users and shipments respective-
ly through its SendParcel online platform.
“The group also saw a strong recovery
in transshipment volume, following the re-
sumption of business in China,” he said.
Pos Malaysia’s share price closed up
4.5 sen or 4.74% at 99.5 sen today, for a
market value of RM778.87 million.

Advertising
KUALA LUMPUR (June 16): The Asso- “To date, this has led to a decline of
ciation of Accredited Advertising Agents 20% in advertising spend (ad spend) in

group seeks SST

Malaysia (4As Malaysia) is appealing to the the first five months of 2020, on the back
government for relief measures, in particu- of decreased revenue streams ranging be-

waiver
lar exemption from the Sales and Services tween 20% and 50%.
Tax (SST), to help ease the agents’ busi- “Based on estimations, ad spend is fore-

ness operations which have been impacted
by the outbreak of Covid-19.
In a statement today, 4As Malaysia chief
executive officer Khairudin Rahim said the as-
sociation, together with industry associations,
had submitted a joint memorandum high-
lighting 10 main points to the government
including the Ministry of Finance, Ministry
of InternationalTrade and Industry and Min-
istry of Communications and Multimedia.
The joint memorandum, he said, is aimed
at helping advertisers facilitate an increase in
advertising budgets and to help the industry in-
cluding manufacturing companies and media
owners and the business community, to safe-
guard jobs and prevent closure of businesses.
The proposed measures include a waiv-
er of SST on all advertisement creation,
production and placement by Malaysian
companies until Dec 31 2020 or until the
for survival
BY SYAHIRAH SYED JAAFAR
theedgemarkets.com
second quarter of 2021 (2Q21).
“Another measure sought is a double
deduction relief of advertising expenditure
incurred by all Malaysian companies for
tax computation purposes until Dec 31,
2020 or until 2Q21.
Khairudin said with disruption to business
operations over the last few months as a result
of the Movement Control Order, many ad-
vertisers had cancelled or rescheduled cam-
paigns and slashed budgets as they used their
advertising expenditure to shore up employee
salaries and defray accumulated debts.
casted to drop by 20% year-on-year by
end 2020, while revenues are expected to
flatline. It is also estimated that most of
the industry’s creative and media agen-
cies including some media owners, have
experienced pay cuts ranging from 10%
to 30%, while an estimated 5% to 10%
employees have been laid off,” he added.
It is also believed that at least 10% have
closed down or re-engineered themselves
to offer different services, Khairudin added.
Meanwhile, another 20% are expected to
downsize or close over the next three months,
if conditions do not improve, he said.
“These conditions are expected to re-
main over the next six to 18 months. The
short- to medium-term temporary assis-
tance from the government is therefore
crucial to help mitigate unemployment
within the industry,” he said.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0 5 THEEDGE CEO MORNING BRIEF

HUBLOT BOUTIQUE
Suria KLCC.
Tel: (03) 2181 7037
THE HOUR GLASS BOUTIQUE
The Hour Glass Sdn Bhd (68659-K)

Lot 10 Shopping Centre.

Tel: (03) 2144 1620
Mid Valley Megamall.
Tel: (03) 2202 2882
Pavilion KualaLumpur.
Tel: (03) 2148 8930
WATCHES OF SWITZERLAND BIG BANG INTEGRAL
The Gardens Mall. –––––––
Tel: (03) 2201 6811 18K King Gold case with integrated bracelet.
thehourglass.com In-house UNICO chronograph movement.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0 6 THEEDGE CEO MORNING BRIEF

H O M E

Green Packet
KUALA LUMPUR (June 16): Set to offer Last month, Green Packet announced
a complete end-to-end solution to banks a tie-up with Tencent Cloud to leverage on

buys e-KYC firm

and financial institutions, Green Packet the latter’s facial recognition and machine
Bhd is buying Singapore-based e-KYC learning capabilities to build a localised

in bid to be
(Electronic Know Your Customer) spe- e-KYC solution.
cialist firm Xendity Pte Ltd for US$10 Green Packet will be paying US$10

full-fledged
million. million for a 100% stake in Xendity, with
With the acquisition, it will enable a combination of cash and shares and with

digital bank
Green Packet to strengthen its digital
identity verification services, a fast-grow-
ing sector as more organisations move to-
wards their digital transformation. This,
in line, will reinforce Green Packet’s po-
sition as the preferred partner for digital
financial solutions for various industries
in Malaysia including telecommunications
and banking.
“The acquisition of Xendity forms a
key part of our go market strategy with
a solid e-KYC solution,” said its group
managing director and chief executive of-
ficer Puan Chan Cheong in a statement.
“Although they (Xendity) are a new
start-up company of about three years,
their track record, experience, and capa-
bilities as a main solution provider in the
regulated e-KYC and ID management
space should be applauded,” Puan not-
ed, adding that Xendity’s solutions will
add significant scale to Green Packet’s
digital financial offerings.
E-KYC specialises in technologies on
document verification, facial recognition
and biometrics and typically only requires
users to do so from their smartphones or
personal computers remotely.
performance-based tranches. It will ini-
tially pay US$1.5 million cash plus issue
of new shares worth US$4 million.
Then, over the next two years, Green
BY WONG EE LIN Packet will pay up to US$4.5 million via
theedgemarkets.com new shares and these payments will be
based on Xendity meeting stipulated key
performance targets.
Since 2018, Xendity has participat-
ed in Bank Negara Malaysia’s e-KYC
Financial Technology Regulatory Sand-
box by working with seven leading banks
in Malaysia. Now, Xendity has become
the e-KYC provider in Malaysia with the
largest deployment of its solutions in the
local financial institutions market, said
Green Packet.
Apart from Malaysia, Xendity is also
making inroads into Indonesia, said Green
Packet.
Other than its digital banking dream
by building an ecosystem under the Ki-
ple brand, Green Packet has also recently
ventured into the proptech space, with a
licence plate recognition technology, in
conjunction with the launch of its flagship
KipleLive solution under We Are Ready
Puan Chan Cheong campaign.

ConnectCounty
KUALA LUMPUR (June 16): Connect- its wholly-owned subsidiary My EG Cap-
County Holdings Bhd said today it is in ital Sdn Bhd (MyEG Capital), Merring-

in talks for
negotiations with a relevant party on the ton Assets Ltd and MyEG Services had
possible reverse takeover exercise involving signed a share sale agreement under which

reverse takeover
S5 Systems Sdn Bhd. MyEG Capital will buy 118 million shares,
Cable and wire manufacturer Con- representing a 10% stake, in S5 Holdings

nectCounty said in a statement to Bursa
Malaysia today that it has not signed any
agreement on the matter.
“However, the company shall make the
necessary announcement(s) as appropri-
ate when there are further developments
on this matter.
“The board of directors is cognisant
of the need for proper dissemination
of information to the public and will
release the relevant announcement on
any material issue in a timely manner
as required by the ACE Market Listing
Requirements of Bursa Malaysia,” Con-
nectCounty said.
ConnectCounty's statement today was
in response to an article appearing on the
klse.i3investor.com website on Saturday.
Today, ConnectCounty said the article
indicated that “... ConnectCounty would
be next vehicle for the backdoor listing (re-
by S5 Systems
BY ADAM AZIZ
theedgemarkets.com
verse takeover) by S5 Systems...”
S5 Systems' website indicates that the
company is a global integrated security
solutions provider to governments and
enterprises.
“We provide the expertise and solutions
to meet national challenges in homeland
security, defence, and intelligence; areas
of vital importance to national interests,”
S5 Systems said.
S5 Systems and electronic government
services specialist My EG Services Bhd
(MyEG Services) were in the news recently.
Last Wednesday, MyEG Services said
Inc for RM90 million.
MyEG Services said S5 Holdings has
two subsidiaries comprising S5 Systems
and S5 Code Solutions Kazakhstan LLP.
MyEG Services said S5 Systems is in-
volved in the “provision of national security
solutions which involves the provision of
security technology intellectual property as
well as the development and customisation
of solutions and systems, consultancy and
support in all related information technol-
ogy and security industries”.
“[S5 Code Solutions is] in the process
of being voluntary wound up by its share-
holder,” MyEG Services said.
At Bursa's 12:30pm break today, Con-
nectCounty's share price settled 1.5 sen
or 4.55% higher at 34.5 sen, valuing the
group at RM128.41 million.
ConnectCounty saw some 38 million
shares traded.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
4D outlets
to resume
operations
tomorrow
BY MUHAMMED AHMAD HAMDAN
theedgemarkets.com
KUALA LUMPUR: Number forecast op-
erators (NFOs) will resume operations to-
morrow after shutting their doors for more
than three months since the Movement
Control Order (MCO) was implemented
on March 18.
Magnum Bhd and Pan Malaysia Pools
Sdn Bhd (Damacai), two of the three NFOs
in Malaysia, have each put up an official
notice on their websites about the reopen-
ing of all its outlets nationwide "starting
June 17".
It is understood that Sports Toto Malay-
sia Sdn Bhd, owned by Berjaya Sports Toto
Bhd (BToto), is also resuming its operations
tomorrow, although there was no official
statement on the matter at press time.
The reopening of the lottery business
follows the implementation of the Recovery
Movement Control Order (RMCO) last
Wednesday to allow nearly all business sec-
tors to operate with the required standard
operating procedures in place.The RMCO
is scheduled to last until Aug 31.
NFOs are expected to be hit badly in
KUALA LUMPUR (June 16):The licens-
ing officer of the Ministry of International
Trade and Industry (MITI) has agreed to
grant a 12-month extension of the pro-
ject implementation period for companies
that have been given manufacturing licenc-
es under the Industrial Coordination Act
1975 to ensure that Malaysian economic
sectors remain competitive despite the on-
going Covid-19 outbreak.
In a statement today, the Malaysian In-
vestment Development Authority (MIDA)
said usually, licensed companies are re-
quired to implement their approved pro-
jects within a period as stipulated in the
approval letter for a manufacturing licence.
“With the implementation of this re-
laxation mechanism, an approved manu-
facturing company will be automatically
given an extension of 12 months to imple-
ment its projects.
“The 12-month extension period will
commence from the end date of the im-
plementation period stated in the approval
letter,” said the agency.
7 THEEDGE CEO MORNING BRIEF
H O M E
the MCO period during which there was
no draw at all.
For its first quarter ended March 31,
2020, Magnum recorded a 7.35% drop in
net profit to RM55.59 million compared
with RM60 million a year earlier. Quarter-
ly revenue fell 19.4% to RM609.54 mil-
lion from RM756.24 million last year, as
six draws were cancelled during the MCO
period up to March 31.
BToto, meanwhile, posted a net profit of
RM48.61 million for its third quarter end-
ed March 31, 2020 (3QFY20) on revenue
of RM1.33 billion. There were no compar-
ison numbers for the previous year's cor-
responding period, due to a change in its
financial year end from April 30 to June 30.
For its cumulative nine months ended
March 31, 2020, BToto's net profit stood
at RM177.5 million, while revenue for the
period was at RM4.18 billion. The group
said its operations were impacted by the
MCO, which saw six draws in 3QFY20
being cancelled.
Analysts expect the full impact of shut-
down to be reflected by the earnings in its
current financial quarter ending June 30.
Both Magnum and BToto saw their
shares settle higher today at RM2.30 and
RM2.28 apiece, respectively.
Magnum gained 6.48% or 14 sen to
RM2.30 with 3.04 million shares done,
giving a market capitalisation of RM3.31
billion.
BToto went up 6.05% or 13 sen to
RM2.28 with 1.74 million units exchang-
ing hands, giving a market capitalisation of
RM3.08 billion.
MITI extends
project
implementation
period by 12
months for
manufacturing
sector to mitigate
Covid-19 impact
BY SYAFIQAH SALIM
theedgemarkets.com
MIDA added that the automatic ex-
tension is only available and applicable
to companies that have obtained interim
approvals or manufacturing licences un-
Muhyiddin
launches digital
dashboard linking
53 ministries,
agencies
BY BERNAMA
PUTRAJAYA (June 16): Pr ime
Minister Tan Sri Muhyiddin Yas-
sin today launched a digital dash-
board that is capable of linking
data from 53 ministries and agen-
cies that are involved in the imple-
mentation of the planned stimulus
packages.
It is aimed at ensuring the pro-
cess of monitor ing and imple-
mention of the Prihatin Rakyat
Economic Stimulus Package (Pri-
hatin) and National Economic Re-
cover y Plan (Penjana) would be
done with transparency, fast and
accurate.
The launch was held in conjunc-
tion with the prime minister’s official
working visit to the Economic Stim-
ulus Implementation and Coordina-
tion Unit Between National Agen-
cies (Laksana), the developer of the
digital dashboard, at the Ministry of
Finance.
der the Industrial Coordination Act 1975
from MITI that have not implemented
their projects yet.
“To enjoy this automatic extension,
companies are required to apply with
MIDA, a government agency under MITI,
by scanning the QR code provided. Com-
panies can submit their applications to
MIDA from June 16, 2020 until May 31,
2021,” it said.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
SINGAPORE (June 16): Southeast Asian
ride-hailing and payment firm Grab said
today it would lay off more than 300 em-
ployees due to the impact of Covid-19, in
the latest setback to major backer SoftBank
Group Corp.
Southeast Asia’s most valuable start-up
with a valuation of US$14 billion informed
staff of the cuts at a town-hall meeting,
according to people with knowledge of
the matter.
Chief executive officer Anthony Tan told
staff in a note which was shared with Reu-
ters the loss-making company would cut
just under 5% of its headcount, or about
360 employees. The company had earlier
asked employees to take voluntary unpaid
leave.
Singapore-based Grab, which is active
in eight countries, did not face capital con-
straints and would be “sunsetting non-core
projects, consolidating teams, and pivot-
ing to focus on deliveries”, a spokeswom-
an said.
Grab currently has US$3 billion in re-
serves, according to a source with knowl-
edge of the matter.
Petra Energy
bags RM171m
Banang oilfield
technical service
job from Petronas
BY JUSTIN LIM
theedgemarkets.com
KUALA LUMPUR (June 16): Petra Ener-
gy Bhd has bagged a technical service con-
tract from Petroliam Nasional Bhd (Pet-
ronas) to provide services for the latter’s
oil field worth an estimated US$40 million
(RM170.8 million).
In a filing with Bursa Malaysia, Pet-
ra Energy said its wholly-owned subsidi-
ary Petra Energy Development Sdn Bhd
(PEDSB) had received and accepted a let-
ter of award on June 4 from Petronas, in
regard to the continuation of Banang field
production to PEDSB under a technical
service agreement.
The two-year contract will come into
effect on June 29, 2020 and will end on
June 28, 2022.
Under the contract, PEDSB, on behalf
of Petronas, will provide services to operate
and maintain the Banang field.
The main scope of works to be undertak-
8 THEEDGE CEO MORNING BRIEF
H O M E
Grab cuts staff
to cope with
virus impact
BY FANNY POTKIN & ANSHUMAN DAGA
theedgemarkets.com
REUTERS
en are production, storage and offloading
facilities, wells and reservoir surveillance,
production planning and forecasting, rou-
tine operations and maintenance, logistics,
and inventory and warehousing.
Petra Energy said the contract is expect-
ed to contribute positively to its earnings
and net assets per share for the duration
of the contract.
“The board and management of Petra
Energy appreciates the support that Petro-
nas has given to the group and the confi-
dence that it has placed in Petra Energy,”
it added.
“PEDSB is in an ideal position to under-
take the operation and maintenance of the
Banang field after having an exposure to the
upstream field development and production
via a thirty percent (30%) Joint Venture in
the Kapal Banang Meranti Small Fields
Risk Service Contract.
“The opportunity to operate and main-
tain Banang Field is a natural progression
and an extension of its services within the
oil and gas industry. In addition, the Petra
Energy group has the right capabilities and
asset such as the Mobile Offshore Produc-
tion Unit (MOPU) to undertake the scope
of works under the terms of the contract,”
it added.
At noon break, Petra Energy’s share price
rose 2.5 sen or 3.57% to 72.5 sen, bring-
ing its market capitalisation to RM234.29
million. Some 182,400 shares were traded.
The stock has risen 81% from its recent
low of 40 sen on March 19.
The lay-offs are the latest restructur-
ing at a SoftBank Group Corp portfolio
company.
“The company (Grab) has been in
growth mode for so many years in many
verticals and it is necessary for it to make
an adjustment to be more focused,” said Ji-
anggan Li, from Singapore-based tech-ven-
ture consultancy Momentum Works.
“With sufficient capital in the bank ac-
count and eased competitive pressure, it
should really focus on building the core
services well to achieve profitability.”
The ride-hailing industry has been
battered by the pandemic, raising doubts
about its business model globally.
SoftBank-backed Uber and Ola have
both cut hundreds of jobs.
The impact in Southeast Asia has been
severe, with 11 drivers for Grab and rival
Gojek telling Reuters last week they had
their income slashed by more than half
during the outbreak.
An increase in food deliveries — fore-
cast as a major growth area for both firms
— has come nowhere near compensating
for the losses in transport.
KNM wins RM73
mil contract
to supply heat
exchanger for China
petrochemical
project
BY SYAHIRAH SYED JAAFAR
theedgemarkets.com
KUALA LUMPUR (June 16): Engineering
and construction group KNM Group Bhd
has landed a RM73.09 million contract to
supply a heat exchanger for a petrochemical
project in China.
In a filing today, KNM said the contract
was awarded by China Petroleum Materi-
als Company Ltd is for the CNPC Jieyang–
Refining Chemical Integration PJ project.
The supply and delivery duration of the
transaction is for a period of 16 months,
KNM said.
“The transaction is expected to contrib-
ute positively to KNM group’s earnings for
the financial year ending Dec 31, 2020 and
Dec 31, 2021,” it added.
KNM’s share price has fallen some 36%
this year. It ended at 23 sen today for a mar-
ket capitalisation of RM601.42 million.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Another round of job rationalisation
seen at Star Media
KUALA LUMPUR (June 16): Amidst
a tough operating landscape, Star Media
Group Bhd is undertaking another round
of cost cutting that will involve a job ra-
tionalisation exercise, industry sources say.
“Letters on the cost cutting exercise in-
volving job rationalisation were issued to
senior management members yesterday
and there are plans for another round of
job cuts later this month for journalists,”
said a source.
Another source said over 100 staff could
be affected.
This is the third cost cutting exercise in-
volving job cuts since 2017.
Star Media has yet to respond when con-
tacted on this matter.
theedgemarkets.com also inquired about
Star Media’s plans for its loss-making busi-
nesses such as its video streaming service
DimSum, which is believed to remain in
the red since its launch in November 2016.
Global media companies have been op-
erating in a challenging operating landscape,
now made worse by the Covid-19 pandemic.
News Corp Australia announced hun-
dreds of job cuts recently as it shut down
over 100 newspapers.
Closer to home, magazine publisher Blu
Inc Media Sdn Bhd — which had under
its umbrella well-known household mag-
azine titles such as CLEO, Cosmopolitan,
Her World, and Female — shut down on
April 30.
It was reported earlier this month that
9 THEEDGE CEO MORNING BRIEF
H O M E
BY JOYCE GOH
theedgemarkets.com
Media Prima group is undergoing another
round of layoffs.
“Disruptive changes in the media sector
and challenging macroeconomic conditions,
exacerbated further by unknown variables
surrounding the Covid-19 pandemic, have
compelled the group to expedite the next
phase of its transformation exercise which
will include revising revenue models and
corresponding cost management,” Media
Prima Bhd noted in a June 4 statement.
In the first quarter this year (1Q20), the
advertising expenditure (adex) of traditional
media dipped 9%, with the biggest loser be-
ing the newspaper segment, down by 24%,
according to statistics by Nielsen.
Total gross adex for the industry in 1Q20
was flat at RM1.34 billion, from the same
period a year ago, sustained by a 56% year-
on-year growth in digital adex.
Star Media reported a net loss of RM3.98
million in 1QFY20 (ended March 31) ver-
sus a net profit of RM3.54 million a year
earlier. Revenue fell to RM65.76 million
from RM82.57 million.
CGS-CIMB Securities Sdn Bhd not-
ed that it was a foregone conclusion that
Star Media would slip into a net loss in
1QFY20. It added in its June 1 report
that Star Media was only able to stay
profitable in the past few quarters thanks
to its other operating income, compris-
ing mostly investment income.
“The movement control order (MCO)
kicked off in the last two weeks of March
2020, prompting advertisers to renege on
their buying commitments. Star’s net loss
of RM4 million was equivalent to 20% of
our FY20F’s net loss forecast. We project
wider losses in the subsequent quarters as
we noticed that advertisement buys became
sparser as the MCO progressed. Thus, we
are keeping our FY20-22F forecasts,” CGS-
CIMB Securities stated.
The research house reiterated its “add”
call on Star Media, citing the company’s
deep-seated value. Its target price for the
stock is 52.4 sen.
It pointed out that Star Media’s cash
hoard stood at RM398.6 million, or 54
sen a share, as at end-March 2020 and that
the company also has real estate with a net
book value of RM158.8 million or 21.5 sen
a share.
Star Media’s stock was trading at 34 sen
apiece at the time of writing.
Following the resignation of its chief ex-
ecutive officer Andreas Vogiatzakis on May
16, Star Media has set up a temporary spe-
cial committee until a suitable candidate
is found.
The temporary special committee com-
prises three non-executive directors — Da-
tuk Fu Ah Kiow, Datuk Dr Mohd Aminud-
din Mohd Rouse and Chan Seng Fatt.
Star Media’s upcoming AGM on June 22
will be fully virtual — a first for the group.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0 10 THEEDGE CEO MORNING BRIEF

H O M E

Covid-19: Covid-19: New vs cured cases

Malaysia
8,505
9000 Total number of positive cases
8000 Total number of recovered cases
records highest 7000
6000
MCO period
7,733

single-day jump 5000

4000 Total number of
recovered cases
in recoveries of
3000
2000
1000
333, active cases 0
March March April April April May June
drop to 651 350
1 18

Daily infections
1 15 29 13 16

300 Daily recoveries 333

BY SYAFIQAH SALIM 250
theedgemarkets.com 200
150
KUALA LUMPUR (June 16): Malaysia 100
reported its highest single-day jump in
50 Daily recoveries 11
Covid-19 recoveries to 333 cases today,
0
far outpacing the 11 new infections report- March March April April April May June
ed, lowering the number of active cases in 1 18 1 15 29 13 16
the country to 651.
This means the rate of recovery from
Covid-19 in Malaysia stood at 90.9% or found in Kuala Lumpur and four in Negeri transferred to the Sungai Buloh Hospital.
7,733 cases, while the number of active cas- Sembilan — where three came from the As for the cases in Sarawak, they are family
es fell to less than 10% of total confirmed Pedas cluster, while one was found among members of patient No.8453.
cases of 8,505, according to the Ministry the previously reported cleaning company The number of active cases remaining
of Health (MoH). As for the new infec- cluster. The remaining four cases involved today was the lowest since the implementa-
tions reported, 10 were local, while one Malaysians, with one found in Selangor tion of the movement control order (MCO)
was imported. and three in Sarawak, he said. on March 18, when the figure stood at 728.
Six of the 10 local transmissions involved The one in Selangor was detected No new fatality was reported today,
foreign workers, said MoH director-general through pre-surgery screening at the Pu- hence the death toll remained at 121 or
Datuk Dr Noor Hisham Abdullah, with two trajaya Hospital before the patient was 1.42% of overall cases.

PMO: PM
KUALA LUMPUR (June 16): The
Prime Minister’s Office (PMO) has de-

did not break

nied that premier Tan Sri Muhyiddin
Yassin went abroad during his two-week

quarantine to get
quarantine period to seek medical treat-
ment for cancer.

chemotherapy
In a statement, the PMO took aim at
the Sarawak Report’s report that Mu-

hyiddin breached his mandatory two-
week quarantine to seek chemotherapy
in Singapore, heading to the republic via
a private jet.
“The prime minister observed the
self-quarantine order for 14 days from
May 22, 2020, following the standard op-
erating procedure (SOP) advised by the
Ministry of Healthy, as he had chaired
a post-Cabinet meeting attended by an
officer who was later confirmed positive
for Covid-19.
“During the quarantine period, the
prime minister strictly adhered to the SOP
and did not leave his house. All official du-
ties were conducted from home, including
a videoconference with the senior minis-
ter of defence and the director-general of
health,” the PMO said.
in Singapore
BY ARJUNA CHANDRAN SHANKAR
theedgemarkets.com
Attached to the statement was a signed
medical report dated June 12 from Muhy-
iddin’s physician Dr Lam Kai Seng, who
confirmed that the premier had stage 1A
pancreatic cancer, diagnosed and fully
treated in 2018, while also having regu-
lar follow-ups at Pantai Hospital Kuala
Lumpur, Gleneagles Hospital Singapore
and Mayo Clinic, the US.
“We are of the opinion that Tan Sri
Muhyiddin Yassin is fit to serve the people
and the nation. As medical professionals,
we are appalled at the false reporting that
had no basis,” the doctor said.
The Sarawak Report published an ar-
ticle on June 9 citing sources which said
that on May 26 Muhyiddin broke home
quarantine, travelling via a private jet to
Singapore, where he stayed overnight to
receive chemotherapy treatment for the
resurgence of pancreatic cancer.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Isa Samad acquitted of CBT charge, ordered to call defence on nine graft charges of receiving RM3.09m.
Isa Samad acquitted of CBT, ordered
to enter defence on nine graft charges
KUALA LUMPUR (June 16): Former
Federal Land Authority (Felda) chairman
Tan Sri Mohd Isa Samad has today been
acquitted of one criminal breach of trust
(CBT) charge but has been ordered to call
for defence on nine graft charges of receiv-
ing RM3.09 million.
This is in relation to Felda’s purchase
of the Merdeka Palace Hotel & Suites in
Kuching by its subsidiary Felda Investment
Corp Sdn Bhd (FIC Sdn Bhd).
While delivering his decision to acquit
the former Negeri Sembilan menteri be-
sar, Justice Mohd Nazlan Mohd Ghazali
said it was the board of FIC, and not the
accused, who in fact approved the pur-
chase of Merdeka Palace Hotel.
“The accused was never authorised to
approve the disposal of company funds for
investments purposes, [thus] the allegation
in the charge that the accused approved the
disposal of company funds cannot be es-
tablished. On this ground alone, the CBT
charge cannot be sustained.
“Furthermore, there is lack of evidence
of the accused having influenced or asked
the other members of the board of FIC to
approve the said purchase. The testimony
of PW15, the CEO and director of FIC
Mohd Zaid Jalil, which suggested other-
wise is inconsistent with the totality of the
prosecution evidence.
“The minutes of the relevant meeting
11 THEEDGE CEO MORNING BRIEF
H O M E
BY HAFIZ YATIM
theedgemarkets.com
Criminal liability under
CBT cannot be founded
on the disposal of
company funds by FIC
to finance the purchase
of Merdeka Palace Hotel
without the approval
of Felda if the payment
for the said purchase
has been consented
to by the agency.”
also did not record any discussion on the
matter. Neither did the main company sec-
retary (PW13) who recorded the minutes
hear anything to that effect,” said the judge.
Justice Nazlan said the court noted that
Felda needed to approve any investments
made by FIC if it is in excess of RM100
million.
However, the judge said witnesses con-
firmed that there were no set procedures
SAM FONG/THE EDGE
as to how the approval from Felda for in-
vestments above RM100 million should be
sought, and the relevant standard operat-
ing procedure was established only upon
the commencement of investigation in this
case by MACC.
“In fact it was shown by the defence
that in respect of certain investments which
exceeded RM100 million, the tabling of
information papers by FIC to the board
of Felda sufficed, without the necessity for
a specific paper for approval.
“At any rate, criminal liability under
CBT cannot be founded on the disposal
of company funds by FIC to finance the
purchase of Merdeka Palace Hotel without
the approval of Felda if the payment for
the said purchase has been consented to
by the agency,” the judge reasoned.
Isa, 70, was accompanied by his wife
Puan Sri Bibi Sharliza Mohd Khalid at
the court today.
On the CBT charge, Isa was alleged
to have approved the hotel purchase for
RM160 million without approval of Fel-
da’s board of directors. He was charged
with committing the offence at Menara
Felda here on April 29, 2014.
The charge was framed under Section
409 of the Penal Code, which carries a
maximum jail term of 20 years, together
with whipping and a fine, upon conviction.
JUMP TO PAG E 1 2
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
KUALA LUMPUR (June 16): Former
Felda chairman Tan Sri Isa Samad said
he will testify under oath as the High
Court has ordered him to enter his de-
fence for the nine charges of corrup-
tion under the Malaysian Anti-Corrup-
tion Commission (MACC) Act levelled
against him.
Speaking to the media outside the
courtroom, Isa said he will be testifying
from the witness stand and will be open
to cross-examination by the prosecution.
“I have been acquitted of the crimi-
nal breach of trust (CBT) charge, so I
will defend myself against the other nine
charges. I have chosen to testify under
oath,” he said.
High Court Justice Mohd Nazlan
Ghazali had acquitted Isa of one count
of CBT, and ordered the accused to en-
ter his defence on the nine graft charges
of receiving RM3.09 billion.
This is in relation to Felda’s purchase
of the Merdeka Palace Hotel & Suites in
Kuching by its subsidiary Felda Invest-
ment Corp Sdn Bhd (FIC Sdn Bhd).
The judge, in his decision, said the
prosecution had proved a prima facie
case on the graft charges on the pre-
sumption rule.
Isa’s counsel Datuk Sallehuddin Sai-
din said the court had set Aug 17, 18
and 19 for his client to enter his defence.
“Tan Sri will be testifying under oath
to deny all allegations. The court will
then decide whether the defence has
raised reasonable doubt against the al-
legations,” said the lawyer.
On the CBT charge, Isa was alleged
to have approved the hotel purchase for
RM160 million without the approval
of Felda’s board of directors. He was
FROM PAG E 11
Called for defence on graft
The court, however, ordered Isa to enter
into his defence on the nine graft charges
as the judge said there is sufficient credible
evidence to establish the ingredients of the
offence of receiving gratification.
“This is on matters concerning the se-
ries of cash withdrawals by PW17 Azizi Ab-
dul Wahab Ikhwan, who was a shareholder
and director of JV Evolution Sdn Bhd, the
agent appointed by Gegasan Abadi Prop-
erties Sdn Bhd (GAPSB), that caused the
delivery of the cash by GAPSB’s Ikhwan
Zaidel to the special officer of the accused,
who finally gave the cash to him as stated
in all the nine charges.
“In view of the evidence of the receipt of
the cash by the accused, I therefore invoke
the statutory presumption under Section
12 THEEDGE CEO MORNING BRIEF
H O M E
Isa Samad:
‘I will testify
under oath’
BY AHMAD NAQIB IDRIS
theedgemarkets.com
I have been acquitted of
the criminal breach of
trust (CBT) charge, so I
will defend myself against
the other nine charges.”
50 of the MACC [Malaysian Anti-Cor-
ruption Commission] Act for the defence
to rebut and show that the gratification
in the form of the cash was not received
corruptly and that it was not obtained as
a reward for the accused’s involvement in
the approval by the board of FIC of the
purchase of Merdeka Palace Hotel,” the
judge said.
Under the nine counts of graft charges,
he was accused of dishonestly receiving a
cash gratification involving RM3.09 mil-
lion from Ikhwan Zaidel, a board mem-
ber of Gegasan Abadi Properties Sdn Bhd,
through Muhammad Zahid Md Arip, in
return for helping to approve the hotel pur-
chase by FIC Sdn Bhd, for RM160 million.
The graft charges were made under
Section 16 of the MACC Act 2009, un-
der which Isa stands to face a maximum
charged with committing the offence at
Menara Felda here on April 29, 2014.
The charge was framed under Sec-
tion 409 of the Penal Code, which car-
ries a maximum jail term of 20 years,
together with whipping and a fine, upon
conviction.
Under the nine counts of graft charg-
es, he was accused of dishonestly re-
ceiving a cash gratification involving
RM3.09 million from Ikhwan Zaidel, a
board member of Gegasan Abadi Prop-
erties Sdn Bhd, through Muhammad
Zahid Md Arip, in return for helping to
approve the hotel purchase by FIC, for
RM160 million.
The graft charges were made under
Section 16 of the MACC Act, under which
Isa stands to face a maximum of 20 years
in jail and a fine of up to five times the
amount of bribes he received.
SAM FONG/THE EDGE
of 20 years in jail and a fine of up to five
times the amount of bribes he received.
Muhammad Zahid, who will be ap-
pointed as a senator, was Isa’s former spe-
cial officer and was an aide to former prime
minister Tun Dr Mahathir Mohamad.
After the verdict was delivered, Isa said
he would testify under oath.
"I am satisfied with sufficient credible
evidence including, among others, the cash
withdrawals of the shareholder or agent
appointed by Merdeka Palace and the de-
livery of cash on the nine occasions," said
the judge.
Justice Nazlan ordered Isa to enter his
defence on Aug 17, 18 and 19.
Isa is represented by Datuk Sallehud-
din Saidin while the prosecution is led by
Deputy Public Prosecutor Afzainizam Ab-
dul Aziz.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0 13 THEEDGE CEO MORNING BRIEF

H O M E

‘Soft-spoken’ Arul Kanda did not pressure

auditor-general to alter 1MDB audit
report, says Ali Hamsa
SAM FONG/THE EDGE

BY AHMAD NAQIB IDRIS

theedgemarkets.com

KUALA LUMPUR (June 16): Former

chief secretary to the government Tan Sri
Ali Hamsa said then 1Malaysia Develop-
ment Bhd (1MDB) president and CEO
Arul Kanda Kandasamy did not pressure
then auditor-general Tan Sri Ambrin Buang
into altering the troubled fund’s audit re-
port during a meeting in February 2016.
Ali, who was testifying at the High
Court today in the audit tampering trial
of former premier Datuk Seri Najib Razak
and Arul, said this when asked about his
use of the word “mendesak” (to urge) in
his witness statement.
Ali had used the word to describe the
way Arul put forward his suggestion that
certain matters be omitted from the audit
report, which led to Najib’s lawyer Tan
Sri Muhammad Shafee Abdullah ques-
tioning the witness over what he meant
by the word he used.
Shafee: What did you mean by “Arul
Kanda mendesak”?
Ali: What I meant was that Arul Kan-
da had his opinions of the report and said lice investigation into the matter.
that certain matters need not be included “There was no pressure or intimida-
in the report. Tan Sri Ambrin agreed with tion. It was all up to the auditor,” testi-
the suggestion that he raised. fied Ali.
Shafee: We will get to that later, but There were other matters dropped
what did you mean with the choice of the from the audit report as well, including
word mendesak? the presence of now-fugitive businessman
Ali: Mendesak can be interpreted in Jho Low at a board meeting, as well as
such a way that it could either be “mende- the agreement between Country Group
sak secara baik” (to politely request) or Securities Thailand and Acme Time Ltd,
to put pressure. In this case, knowing his a company linked to Low.
character — he talks very softly. So, it is What I meant was that Arul The witness said neither himself, Arul
“mendesak secara baik”. Kanda had his opinions nor anyone from the Prime Minister’s Of-
Ali agreed with Shafee’s suggestion of the report and said that fice had threatened Ambrin to amend the
that Arul is known for being soft-spoken certain matters need not be audit report, adding that he did not feel
and polite, and that Arul had put forward included in the report. Tan as though the then auditor-general was
a strong case for the amendment of the under any pressure.
audit report.
Sri Ambrin agreed with the Najib is charged with abusing his posi-
During cross-examination, Ali said then-
suggestion that he raised.” tion to order amendments to the 1MDB
prime minister Najib had expressed unhap- — Ali Hamsa final audit report to avoid any action being
piness at the draft of the National Audit taken against him while Arul is charged
Department’s report on 1MDB, and said with abetting Najib in making the amend-
that it was requested for the department to ments to the report.
omit that there were two differing financial Both of them were charged under Sec-
statements for 1MDB for the same year. tion 23(1) of the Malaysian Anti-Corrup-
However, Ali made it clear that there tion Commission Act 2009, which pro-
was no pressure or intimidation involved vides a jail term of up to 20 years and a
in getting the department to drop the mat- fine of no less than five times the amount
ter from the report, as the department was of gratification or RM10,000, whichever
given assurance that there would be a po- is higher, upon conviction.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
KUALA LUMPUR (June 16):The action of
National Audit Department (NAD) direc-
tor (governance sector) Datuk Nor Salwani
Muhammad, who had recorded the Feb 24,
2016 meeting of top government officials
without their knowledge, could be deemed
as unethical, according to former chief sec-
retary to the government Tan Sri Ali Hamsa.
During cross-examination by lead de-
fence counsel Tan Sri Muhammad Shafee
Abdullah today, Ali said he was surprised
to learn that the NAD official had made
an audio recording of the meeting, which
was convened to discuss amendments to
be made in the department’s audit report
on 1MDB.
Ali, who is the fourth prosecution witness
in the 1Malaysia Development Bhd (1MDB)
audit tampering trial, said the action was
unethical because it was recorded without
his permission as chairman of the meeting.
Shafee: Did you organise the meeting
to be recorded so that you can review it or
for NAD to review it?
Ali: I never asked for any recording.
Shafee:Were you aware of any recording?
Ali: I was not aware.
Shafee: Did anyone from NAD ask per-
mission to record?
Ali: No.
Shafee: If NAD asked your permission,
would you have refused?
Ali: I do not know how I would have
reacted to the request.
Shafee: But it is up to you whether to
allow such a request?
Ali: Yes.
Shafee: Were you surprised that one of
the NAD officers recorded the meeting?
Ali: Yes.
Shafee: Was it unethical because it was
done without permission?
Ali: Yes, everyone in the room did not
KUALA LUMPUR (June 16): The prose-
cution team of the 1Malaysia Development
Bhd (1MDB) final audit report tampering
trial of former prime minister Datuk Seri
Najib Razak and former 1MDB president
Arul Kanda Kandasamy is seeking to amend
the charge against both of the accused.
Lead public prosecutor Datuk Seri Gopal
Sri Ram told High Court Justice Mohamed
Zaini Mazlan he will seek to amend certain
wording in the charge sheet tomorrow as he
claimed that there were “typographical errors”.
However, lead defence counsel Tan Sri
Muhammad Shafee Abdullah said he will ob-
ject to the application, claiming that his team
had prepared the whole argument for the case
by relying on the initial unamended charge.
“We will object to the [proposed]
amendment to the charge as our prepa-
ration has been based on this charge. We
14 THEEDGE CEO MORNING BRIEF
H O M E
Ex-govt chief sec
attend, there would have been no need to
record its proceedings, as she would have
Ali Hamsa says
just taken down notes as usual. He said the
minutes were to be taken for internal use.
Nor Salwani’s
In November, it was revealed in court
that Nor Salwani, 52, who is the fifth pros-
recording of
ecution witness, was the one who secret-
ly recorded the fateful meeting where top
audit meeting
government officials agreed to amend and
destroy the original 1MDB audit report.
‘unethical’
Nor Salwani testified that she was sup-
posed to attend the meeting as the coor-
dinator of the 1MDB audit report team to
take minutes, but was not allowed into the
BY EMIR ZAINUL & AHMAD NAQIB IDRIS meeting room.
theedgemarkets.com However, the witness said just before
leaving the room, she placed the record-
ing device in the pencil case of colleague
Saadatul Nafisah Bashir Ahmad, who was
the then audit director of the department.
After the device was retrieved, Nor Sal-
wani and her colleagues played the record-
ing before the audit team and were shocked
at what they heard.
Nor Salwani said as she feared the reper-
cussions of making the recording without the
knowledge of Ali, who was the chairman of
the meeting and then chief secretary of the
government, she decided to make copies of
the audio on a hard drive and a thumb drive.
Prior to Nor Salwani’s testimony, the
whole audio recording was played to Ali
in open court. The recording had become
Former chief secretary to the government a key piece of evidence in the case.
Tan Sri Ali Hamsa. Following the revelation, Nor Salwani
became a public hero and was conferred a
know of the recording. At that time, it would datukship by Yang Di-Pertuan Agong Sul-
be unethical. tan Abdullah Sultan Ahmad Shah earlier
However, former auditor-general Tan in February.
Sri Ambrin Buang had previously testified During the ceremony, Nor Salwani was
that Nor Salwani did not breach any code among the 25 recipients of the Panglima
of conduct by recording the meeting. Mahkota Wilayah which carries with it the
Ambrin said had she been allowed to title “Datuk”.
will object strenuously,” he said.
Prosecution seeks The confusion arose as Muhammad
to amend typo Shafee argued that according to the charge
sheet, the request for amendments to the
errors in charge audit report was made before it was pre-
sented to the Public Accounts Committee
against Najib, Arul (PAC) in a meeting.
As such, Muhammad Shafee claimed
in 1MDB audit that the amendments were made on drafts,
not the final copy.
tampering trial When met after the proceedings, Depu-
ty Public Prosecutor Ahmad Akram Ghar-
ib said that the prosecution seeks to amend
the wording in the charge sheet to make
BY EMIR ZAINUL it more “abundantly clear”. He did not
theedgemarkets.com divulge any details.
The trial is adjourned to 9.30am to-
morrow as Justice Mohamed Zaini is ex-
pected to hear the application to amend
the wording of the charge.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Witness: Zahid
told me to issue
tahfiz donation
cheque in law
firm’s name
BY HAFIZ YATIM
theedgemarkets.com
KUALA LUMPUR (June 16): A business-
man said he was informed by Datuk Seri
Dr Ahmad Zahid Hamidi that if he wished
to donate to a tahfiz (religious school) run
by the former deputy prime minister, he
should issue the cheque in the name of law
firm Lewis & Co.
Testifying in Zahid’s corruption trial
at the High Court today, Mubarak Hus-
sain Akhtar Husin said he wrote a cheque
for RM2 million to Lewis & Co on Nov
25, 2016.
Mubarak, 44, is the owner of Seri Jaya
Perkasa Sdn Bhd since 2002.The company
had a contract with the home ministry relat-
ing to the deportation of illegal immigrants,
under which it was paid RM20.5 million
for every two years until October 2017.
The businessman said he has known
Zahid since 2008, when they met at the
Kampung Baru mosque with his brother.
“Since then, he (Zahid) has been friends
with me,” Mubarak said in reply to a ques-
tion from Deputy Public Prosecutor (DPP)
Mohd Harris Ong Mohd Jeffrey Ong.
Mubarak, who is the prosecution’s 61st
witness, said he had been to the tahfiz run
by the Umno president twice, and admitted
playing a role in finding some of its teachers.
“I gave the [RM2 million] contribution
KUALA LUMPUR (June 16): Sapura En-
ergy Bhd has appointed Tan Sri Hamid
Bugo as its new independent and non-ex-
ecutive chairman, with immediate effect.
Hamid, who is currently the group’s
director, replaces Abdul Jalil Abdul Rash-
eed, who has vacated the post following his
resignation as president and group chief
executive of Permodalan Nasional Bhd
yesterday.
Hamid, who is also currently the chair-
man of Sarawak Consolidated Industries
Bhd and Sapura Resources Bhd, was pre-
viously the state secretary of Sarawak. The
74-year-old joined Sapura Energy’s board
on Feb 27, 2012 as an independent and
non-executive director.
According to the group’s Annual Report
15 THEEDGE CEO MORNING BRIEF
H O M E
Datuk Seri Dr Ahmad Zahid Hamidi
to the tahfiz school run by Datuk Seri [Dr]
Ahmad Zahid Hamidi sincerely,” the wit-
ness said, adding that he did not suspect
anything wrong as he trusted Zahid.
The tahfiz, as revealed by Zahid’s law-
yers, is SM Imtiaz Ulul Albab, in Masjid
Tanah, Melaka.
Zahid, 67, is on trial for 47 charges —
12 for criminal breach of trust, eight for
corruption and 27 money laundering —
involving tens of millions of ringgit of funds
belonging toYayasan Akalbudi, a charitable
foundation he set up.
During cross-examination by Zahid’s
counsel Datuk Ahmad Zaidi Zainal,
Mubarak said the contribution he made
had nothing to do with his company’s con-
tract with the home ministry.
The witness agreed with Ahmad Zaidi
that when he bought Seri Jaya Perkasa in
2002, the company had already secured
the contract to deport illegal immigrants
since 2001, with a renewal every two years
until 2017.
Sapura Energy
names Hamid
Bugo as new
chairman
BY SYAHIRAH SYED JAAFAR
theedgemarkets.com
SAM FONG/THE EDGE
Ahmad Zaidi: This means that you
gave the cheque of RM2 million in 2016
before you knew the contract might ex-
pire in 2017 and there was a possibility it
would not be renewed?
Mubarak: Yes.
Ahmad Zaidi: Who was the home
minister in 2015? Was it Hishammuddin
(Datuk Seri Hishammuddin Hussein)?
Mubarak: Yes.
Replying to DPP Ahmad Shazalee Ab-
dul Khairi during re-examination, Mubarak
said he did not claim a tax relief from the
Inland Revenue Board for the donation he
made in 2016 as he had forgotten about it.
Other witnesses who testified for the
prosecution included bank officers Wong
Lee Chin, Lisa Ng and Yong Jyi Kae.
Others were KG Rajan Gunaretnam,
Datuk Khatijah Sulaiman, and Ong Weng
Fatt, all of whom testified that they had
issued cheques to Lewis & Co.
The trial before Justice Collin Lawrence
Sequerah continues tomorrow.
2019, Hamid once served as the admin-
istration manager of Malaysia LNG Sdn
Bhd, as well as the first general manager
of the Land Custody and Development
Authority, Sarawak. He was also formerly
the permanent secretary at the Ministry
of Resource Planning, Sarawak.
He also previously sat on the boards
of companies and statutory bodies such
as the Employees Provident Fund, Sime
Darby Bhd, Malaysian Airline System Bhd,
Malaysia LNG, Universiti Malaysia Sar-
awak, and Universiti Pertanian Malaysia
(now known as Universiti Putra Malaysia).
Sapura Energy shares have dropped
63% this year. The counter closed at 10
sen today, for a market capitalisation of
RM1.52 billion.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
LONDON (June 16):The global stocks ral-
ly was back on track on Tuesday, with more
support from the Federal Reserve and the
Bank of Japan helping end a bumpy few days
for financial markets.
A nearly 5% jump by Japan’s Nikkei en-
sured the best day for Asian equities since
late March and almost 2% rises from Lon-
don, Paris and Frankfurt got Europe off to
a fast start.
Talk that U.S. firms may be allowed
to work with China’s Huawei on new 5G
standards eased trade jitters, and a report
of a new US$1 trillion U.S. infrastructure
programme also boosted markets.
“It is a buy-the-dip mentality,” John Har-
dy, head of FX strategy at Saxo Bank, said
after risk-sensitive currencies such as the
Australian dollar also made gains overnight.
“But the degree and the speed that things
are melting back in FX now is telling... you
feel like you can’t really trust these moves.”
That melt saw the dollar firm up at 96.62,
having dropped almost 1% from Monday’s
high of 97.396. The Aussie was also back-
sliding, having risen more than 2% off a
two-week low in Asian trading.
The euro and yen were both barely budg-
ing at US$1.1333 and 107.33 yen per dollar.
The Bank of Japan had increased its lending
packages for cash-strapped firms to US$1
trillion from about US$700 billion, but had
Gold gains after
Fed ramps
up support
measures
BY BRIJESH PATEL
Reuters
BENGALURU (June 16): Gold rose today
after the US Federal Reserve (Fed) wid-
ened its programme of buying corporate
debt to combat the financial toll of the pan-
demic as worries grew about a second wave
of Covid-19 infections.
Spot gold was up 0.1% at US$1,726.20
(RM7,375.19) per ounce by 0647 GMT
after falling more than 1% yesterday. US
gold futures rose 0.3% to US$1,733.
“The Fed pushing ahead with further
stimulus measures, including these corpo-
rate bonds, indicates that this type of mon-
etary easing is going to continue for some
time,” said ANZ analyst Daniel Hynes.
“There are enough concerns around the
economic outlook to keep investor demand
for gold pretty solid.” Improving risk sen-
16 THEEDGE CEO MORNING BRIEF
W O R L D
Stimulus splurge
restarts stocks
rally
BY MARC JONE & ELIZABETH HOWCROFT
Reuters
But the degree and the speed
that things are melting back
in FX now is telling... you
feel like you can’t really trust
these moves.” — John Hardy,
head of FX strategy at Saxo Bank
also kept rates steady, sticking to its view
that the Japanese economy will gradually
recover from the impact of the coronavi-
rus pandemic.
The Fed also announced on Monday
eagerly-awaited details of its programme to
lend funds directly to companies.
The facility, which began purchasing
timent could, however, curtail additional
investor appetite for gold, Hynes added.
Gold tends to benefit from widespread
stimulus measures from central banks be-
cause it is widely viewed as a hedge against
inflation and currency debasement. The
Fed said it will start purchasing corporate
bonds today in the secondary market,
sparking a risk-on move that sent global
stocks higher and weighed on the US dol-
lar. The Bank of Japan said it expects to
pump around ¥110 trillion (US$1 trillion
or RM4.38 trillion) into the economy via
its market operations and lending facili-
ties. Global cases of Covid-19 reached over
shares of exchange-traded funds in mid-
May, is one of the Fed’s recently created
tools meant to improve market functioning
after the coronavirus.
Benchmark 10-year Treasury yields notes
edged up to 0.74% in response, and the
spread between two-year and 10-year yields
widened to 54 basis points in another sign
of improving risk appetite.
German, French, Dutch and other core
yields rose in Europe too, and riskier Ital-
ian yields fell to their lowest since the end
of March.
“In absence of a further surge in new
(coronavirus) infections in China or the US,
the market hopes about monetary and fis-
cal tailwinds alongside improving sentiment
indicators should prevail,” Commerzbank
strategists wrote.
Oil prices also steadied in commodity
markets as lingering concerns over fuel de-
mand from the resurgence of new corona-
virus infections were cushioned by hopes
of further cuts in crude supplies.
U.S. crude was trading up 1.2% at
US$37.58 a barrel after falling 1.2%, and
Brent crude also rose 1.5% to US$40.34
per barrel.
Improving sentiment also pushed upWall
Street futures with e-Minis for the S&P 500
rising 1.6%. U.S. markets had made a late
dash to finish higher on Monday.
eight million yesterday as infections surged
in Latin America and the US and China
grappled with fresh outbreaks.
“Increasing infections imply economic
weakness and a need for continued fur-
ther economic [fiscal and monetary sup-
port], which are all supportive of gold,”
said National Australia Bank economist
John Sharma.
Palladium climbed 2.5% to
US$1,954.70 per ounce and platinum
jumped 0.8% to US$818.35, having dipped
to a one-month low yesterday. Silver fell
0.7% to US$17.30, but held above the last
session’s near three-week low.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
China’s financial hub of Shanghai demanded some travellers from Beijing be quarantined for two weeks, as 27 new COVID-19
cases took the capital’s current outbreak to 106 since Thursday.
Virus-hit Beijing tightens outbound travel;
Shanghai demands quarantine
BEIJING (June 16): Beijing banned high-
risk people from leaving the Chinese capi-
tal and halted some transportation services
on Tuesday to stop the spread of a fresh
coronavirus outbreak to other cities and
provinces.
China’s financial hub of Shanghai de-
manded some travellers from Beijing be
quarantined for two weeks, as 27 new
COVID-19 cases took the capital’s cur-
rent outbreak to 106 since Thursday.
That makes it the most serious flare-up
in China since February, stoking fears of
a second-wave of the respiratory disease
which emerged in the central city of Wuhan
late last year and has now infected more
than 8 million people worldwide.
The latest outbreak has been traced to
the sprawling Xinfadi wholesale food cen-
tre in the southwest of Beijing where thou-
sands of tonnes of vegetables, fruits and
meat change hands each day.
Beijing had designated 22 neighbour-
hoods as medium-risk areas as of Mon-
day. Medium-risk areas are required to take
stringent measures to block the potential
entry of infection.
All high-risk people in Beijing, such as
close contacts of confirmed cases, are not
allowed to leave the city, state media report-
ed on Tuesday, citing municipal officials.
All outbound taxi and car-hailing ser-
vices have also been suspended. Some
17 THEEDGE CEO MORNING BRIEF
W O R L D
BY RYAN WOO, LIANGPING GAO, TINA QIAO,
LUSHA ZHANG, SE YOUNG LEE & WINNI ZHOU
Reuters
The stakes are high for
Shanghai, which has been
invited to host two Formula
One races this season. U.S.
airlines are also poised to
resumes flights to the city.
long-distance bus routes between Beijing
and nearby Hebei and Shandong provinces
were suspended.
Governments in many parts of China
have imposed quarantine requirements on
visitors from Beijing, concerned about con-
tagion risks.
One suspected case who flew from Bei-
jing to southwestern Sichuan province has
become a confirmed case, health authori-
ties said on Tuesday, and local officials are
rounding up 111 close contacts for ob-
servation.
Hebei province reported four new cases,
with two having come into direct contact
with a virus carrier in the Chinese capital,
and one being an operator at the Xinfadi
market.
Shanghai on Tuesday started to require
REUTERS
travellers from medium-to-high risk COV-
ID-19 areas in China to be quarantined
for 14 days.
The stakes are high for Shanghai, which
has been invited to host two Formula One
races this season. U.S. airlines are also
poised to resumes flights to the city.
‘Wartime’ mode
While not in a Wuhan-style lockdown, the
Chinese capital has gone into a “wartime”
mode on a district level, with local neigh-
bourhoods instituting 24-hour security
checkpoints, closing schools and banning
wedding banquets.
“Beijing will take the most resolute, de-
cisive, and strict measures to contain the
outbreak,” Xu Hejian, spokesman at the
Beijing city government, said at a press
conference on Tuesday.
Overnight, some parts of Beijing includ-
ing the city’s old-style hutong neighbour-
hoods were fenced up, with entry and exit
restricted to a few round-the-clock security
checkpoints.
“We work as usual, but neighbourhood
checks have become more strict,” said Bei-
jing resident Jin Rong, 23.
“I’m not worried that Beijing will be like
Wuhan, because the current epidemic con-
trol measures have kicked in very quickly,
and have been very strict. People also have
a strong sense of self-protection.”
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
TOKYO/SINGAPORE (June 16): Oil
prices made marginal gains on Tuesday,
reversing out of earlier losses, as hopes
for further cuts in crude supplies took the
sting out of concerns that a resurgence
of new coronavirus infections around the
world could hamper fuel demand.
Brent crude edged up 9 cents, or 0.2%,
at US$39.81 a barrel by 0659 GMT, hav-
ing gained 2.6% on Monday. US oil gained
3 cents, or nearly 0.1%, to US$37.15 a
barrel, after closing 2.4% higher in the
previous session.
Coronavirus cases rose to more than 8
million worldwide by Monday, with infec-
tions surging in Latin America, while the
United States and China are dealing with
fresh outbreaks. But some observers said they
didn’t expect to see any return to the strin-
gent lockdowns seen at the start of the year.
“While the run of Covid-19 headlines
emphasise that a demand recovery is likely
to be a slow process, it seems unlikely that
we see a return to the lockdown measures
of 1H,” said Stephen Innes, Chief Global
Markets Strategist at AxiCorp, in a note.
Hopes of more cuts in oil supplies by
Indonesia central
bank seen cutting
rates for third
time this year as
economy shrinks
BY TABITA DIELA & NILUFAR RIZKI
Reuters
JAKARTA (June 16): Indonesia’s cen-
tral bank is expected to make its third
rate cut this year on Thursday to step up
its support for Southeast Asia’s largest
economy amid the coronavirus pandem-
ic, a Reuters poll showed on Tuesday.
Finance Minister Sri Mulyani Indrawati
on Tuesday said the economy would likely
contract by 3.1% in the second quarter,
shrinking for the first time since 1999 due
to curbs to imposed to contain the spread
of the coronavirus.
Eighteen of 30 economists in the poll
expected Bank Indonesia (BI) to cut the
benchmark 7-day reverse repurchase rate
by 25 basis points (bps) to 4.25% — the
lowest in two years. Another economist
pencilled in a 50 bp-cut.
The other 11 predicted BI would hold
the rate at 4.50%, arguing that the ru-
piah is once again under pressure due
18 THEEDGE CEO MORNING BRIEF
W O R L D
Oil prices
edge higher
as supply cut
hopes outweigh
coronavirus
resurgence fears
BY AARON SHELDRICK & SENG LI PENG
Reuters
major producers also helped prevent steep-
er price drops, analysts said.
Prices rose on Monday after the United
Arab Emirates’ energy minister expressed
confidence that OPEC+ producers —
members of the Organization of the Pe-
troleum Exporting Countries (OPEC) and
allies including Russia — that have not
been in full compliance with previously
agreed cuts would up their game.
to fears of a second wave of coronavirus
infections.
Those predicting a cut said BI needs
to act to support economic recovery as
Indonesia began to ease movement re-
strictions, even as the daily number of new
coronavirus cases rises.
Plunging exports and imports, lethargic
retail sales, clumping car sales and an infla-
tion rate that struck a 20-year low of 2.2% in
May, have reinforced expectations of acute
economic pain due to the pandemic.
“If the (benchmark) interest rate stays
where it is, inflation will fall to below BI’s
target range,” said Trimegah Sekuritas
economist Fakhrul Fulvian, referring to
the central bank’s 2%-4% target. Fulvi-
an was the lone analyst expected a cut
of 50 bps.
Bank Central Asia’s chief economist
David Sumual, who expects a cut of 25
“Renewed optimism that OPEC+ pro-
duction cuts could remain in place if we
see second-wave (coronavirus) concerns
intensify have oil prices refusing to enter
freefall,” said Edward Moya, senior mar-
ket analyst at OANDA.
The Organization of the Petroleum
Exporting Countries (OPEC) and allies
including Russia, a grouping known as
OPEC+, agreed this month to extend pro-
duction cuts of 9.7 million barrels per day
through July. They also called on members
that have not been complying to make up
their commitments with extra cuts later.
Elsewhere US shale producers are also
cutting back on drilling amid the collapse
in demand for oil.
Production from seven major US shale
formations is likely to drop to close to a
two-year low of 7.63 million barrels per
day by July, the US Energy Information
Administration said on Monday.
US drillers have slashed production
and the number of oil rigs fell below 200
last week, the lowest since June 2009, ac-
cording to energy services company Baker
Hughes Co.
REUTERS
bps, predicted GDP would shrink by as
much as 5% on-year in April-June.
Bank Indonesia has cut the benchmark
twice this year, on top of four cuts in 2019.
Officials had in previous meetings cited
room to cut the policy rate further, but
decided against doing so to maintain at-
tractive yield spreads on Indonesian assets.
Barclays economists, among those ex-
pecting no change, said BI may wait until
the second half of 2020 before slashing the
benchmark by a total of 100 bps.
“The central bank’s apparent prioriti-
sation of exchange-rate stability suggests
that policy easing is unlikely to occur in
the near-term as long as BI views financial
market uncertainty as still high due to the
Covid-19 outbreak,” they wrote in a note.
Indonesia as of Monday reported
39,294 coronavirus cases, with 2,198
fatalities.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Tencent aims to
become biggest
shareholder of
video-streaming
rival iQIYI —
sources
BY ZHANG YAN & JULIE ZHU
Reuters
BEIJING/HONG KONG (June 16): Ten-
cent Holdings Ltd aims to become the big-
gest shareholder of video-streaming rival
iQIYI Inc, said two people familiar with the
matter, to lower costs and counter compe-
tition in a sector boosted by stay-at-home
virus policies.
The Chinese social-media and gaming
leader has approached iQIYI’s 56.2%-own-
er Baidu Inc to buy a stake of as-yet unde-
termined size, one of the people said. It was
not immediately clear whether Tencent had
approached iQIYI or what the full nature
of any cooperation would entail.
“A tie-up would improve their bargain-
ing power when producing and purchasing
content, and lower marketing costs that
would otherwise be spent on grabbing
users from each other,” the person said.
Plans are at an early stage and subject
to change, said the people on condition of
anonymity as the information was private.
Nasdaq-listed iQIYI, popularly con-
sidered China’s equivalent to Netflix Inc,
has a market capitalisation of US$14 bil-
lion. Shareholder voting power is 92.7%
controlled by Baidu. Search-engine firm
Baidu, iQIYI, and Tencent declined to
comment.
The potential deal — reported here for
the first time — would join two of China’s
biggest media forces, with each boasting
over 110 million paid subscribers at end-
March.
A deal would also take Tencent a step
closer to becoming China’s dominant on-
line entertainment provider, at a time when
cinemas are struggling with a drop in punt-
ers since the Covid-19 outbreak while stu-
dios are turning online to sell their content.
Both Tencent and iQIYI have seen con-
tent expenses increase as they compete
with each other as well as operators of us-
er-generated video-sharing sites such as
Bilibili Inc and ByteDance, owner of Tik-
Tok and domestic version Douyin.
Taken together, China’s online video
market is set for 2020 revenue of 156.6
19 THEEDGE CEO MORNING BRIEF
W O R L D
REUTERS
REUTERS
The Chinese social-
media and gaming leader
has approached iQIYI’s
56.2%-owner Baidu Inc
to buy a stake of as-yet
undetermined size, one
of the people said.
billion yuan, according to iResearch.
Singapore
Tencent Video and iQIYI as well as
smaller rival Youku, owned by Alibaba
to halt
Holding Group Ltd, offer movies, drama
series, and reality shows — both own-made
construction
and bought from content producers.
Tencent Video has made several hit se-
on airport
ries such as the “The Untamed” and owns
the broadcasting rights of HBO’s “Game
terminal for
of Thrones”, while iQIYI original variety
shows “The Rap of China” and “The Big
two years —
Band” have been major topics on social
media.
Straits Times
iQIYI booked an 11% rise in content
costs for the January-March quarter ver-
sus the same period a year earlier, while
revenue growth slowed to 9% from 43%.
The firm, which has yet to break even in its BY ARADHANA ARAVINDAN
10-year life, recorded a net loss of US$406 Reuters
million.
By comparison, Bilibili, which targets SINGAPORE (June 16): Singa-
a younger demographic with videos of pore will halt construction of the
gameplay and anime, enjoyed a 69% rev- fifth terminal at its Changi Airport
enue rise. for at least two years amid uncer-
Should there be a need to raise capital tainty about Covid-19’s impact on
to finance growth, iQIYI believes deteri- the aviation sector, the transport
orating Sino-US relations would deter in- minister said, according to the
vestors, including main backer Baidu, one Straits Times.
of the people said. Khaw Boon Wan said the gov-
iQIYI chief executive Gong Yu in De- ernment was carrying out a study
cember said US investors made up of 70% of how the aviation sector will
the company’s total. change, and the design of terminal
Baidu itself was considering delisting five would be altered to take new
from Nasdaq amid the diplomatic tension safety requirements into account,
and moving to an exchange closer to home according to the report published
to boost its valuation, sources told Reuters on Tuesday.
last month.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Huawei CFO
raises new
argument to fight
U.S. extradition
in Canada court
BY TESSA VIKANDER & KAREN FREIFELD
Reuters
VANCOUVER/NEW YORK (June 16):
Huawei Chief Financial Officer Meng Wan-
zhou is raising a new argument in a Canadi-
an court in a bid to fight extradition to the
United States on bank fraud charges, court
documents released on Monday showed.
Meng’s lawyers claim the case that the
United States submitted to Canada is “so
replete with intentional and reckless error”
that it violates her rights.
Meng, 48, was detained in Vancouver
on Dec. 1, 2018, at the request of the Unit-
ed States, where she is charged with bank
fraud and accused of misleading HSBC
Holdings Plc about Huawei Technologies
Co Ltd’s business in Iran.
Meng, the daughter of billionaire Hua-
wei founder Ren Zhengfei, has said she is
innocent and is fighting extradition.
The arrest has strained China’s relations
with both the United States and Canada.
A PowerPoint presentation that Meng
gave to a HSBC banker in Hong Kong
in 2013 has been cited as key evidence
against her.
In that presentation, Meng said that
Skycom Tech Co Ltd — a firm that op-
erated in Iran — was “a business partner
of Huawei,” while the United States has
20 THEEDGE CEO MORNING BRIEF
W O R L D
REUTERS
KKR,
Temasek
takes 6% stake
in Vinhomes
for US$650m
BY THE EDGE SINGAPORE
HANOI (June 16): A KKR-led
consortium of investors, which
includes Temasek Holdings, have
invested VND15.1 trillion, or
US$650 million for a 6% stake
into Vietnam’s largest developer
Vinhomes.
described it as an unofficial subsidiary. Vinhomes, listed on the Ho Chi
Meng’s lawyers argued the prosecutors Minh Stock Exchange, has a real
omitted key disclosures Meng made in the estate portfolio across residential,
presentation regarding Huawei’s ongoing commercial and industrial sectors.
business operations in Iran and that Sky- “This investment exemplifies
com worked with Huawei in sales and ser- the type of platinum brands and
vice in Iran. management teams KKR looks
Without those disclosures, the lawyers to work with in Southeast Asia,”
said, the U.S. summary of the PowerPoint says Ashish Shastry, co-head of
was “materially misleading.” private equity for KKR Asia Pa-
Meng’s lawyers also pointed out that cific & Head of Southeast Asia.
the case said only “junior” HSBC em- “Today’s announcement fur-
ployees knew of the relationship between ther underscores our strong com-
Huawei and Skycom. Meng’s lawyers said mitment to Vietnam, where KKR
it is implausible that HSBC senior man- has been active and present for
agement was unaware of the relationship, nearly a decade.”
given Huawei was one of HSBC’s biggest Upon completion of this deal,
clients. Vingroup, a Vietnamese conglom-
The lawyers also said that a $900 mil- erate with interests in technology,
lion credit facility that the United States industrials, hospitality, education
said HSBC had extended to Huawei did and healthcare, remains the largest
not exist. Rather Huawei was in a $1.6 shareholder of Vinhomes.
billion credit arrangement with 26 banks, Credit Suisse (Singapore) Lim-
and HSBC’s total contribution was limited ited acted as sole financial advisor
to $80 million, they argued. to Vingroup.
In addition, the lawyers said, the credit
facility was never drawn on by Huawei and
was canceled in June 2017.
Assistant Chief Justice Heather Holmes
of British Columbia Supreme Court said
in a case conference on Monday that she This investment
wanted to be fully apprised of the U.S. case exemplifies the type of
before turning to Meng’s claims that her platinum brands and
rights were violated when she was arrested. management teams
A spokesman for U.S. prosecutors de- KKR looks to work
clined to comment. HSBC did not respond
immediately. A spokeswoman for Canadian
with in Southeast
Justice minister declined to comment as
Asia.” — Ashish Shastry,
the case remains before the courts. co-head of private equity
Last month, a Canadian judge allowed for KKR Asia Pacific &
the extradition case to continue, rejecting Head of Southeast Asia.
defense arguments that the U.S. charges
against Meng do not constitute crimes in
Canada.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
North Korea blows up liaison office
on its side of border with South
BY HYONHEE SHIN & JOSH SMITH
Reuters
SEOUL (June 16): North Korea blew up an
office set up to foster better ties with South
Korea in its border town of Kaesong today
after it threatened to take action if North Ko-
rean defectors went ahead with a campaign
to send propaganda leaflets into the North.
North Korea’s KCNA state news agency
said the liaison office, which had been closed
since January over fears of Covid-19, was
“tragically ruined with a terrific explosion”.
Black-and-white surveillance video re-
leased by South Korea’s Ministry of Defence
showed a large explosion that appeared to
bring down the four-storey structure. The
blast also appeared to cause a partial collapse
of a neighbouring 15-storey high-rise that
had served as a residential facility for South
Korean officials who staffed the liaison office.
The office, when it was operating, effec-
tively served as an embassy for the old ri-
vals and its destruction represents a major
setback to efforts by South Korean Presi-
dent Moon Jae-in to coax the North into
cooperation.
Tension has been rising over recent days
with North Korea threatening to cut ties with
South Korea and retaliate over the propa-
ganda leaflets, which carry messages criti-
cal of North Korean leader Kim Jong-un,
including on human rights.
KCNA said the office was blown up to
force “human scum and those, who have
sheltered the scum, to pay dearly for their
crimes”. North Korea refers to defectors as
“human scum”.
A South Korean military source told Reu-
ters that there had been signs North Korea
was going ahead with the demolition earlier
in the day, and South Korean military of-
ficials watched live surveillance imagery as
the building was blown up.
The first diplomatic mission of its kind,
the inter-Korean liaison office was estab-
lished in 2018 as part of a series of projects
aimed at reducing tensions between the two
Koreas.
The building had been originally used as
offices for managing operations at the Kae-
song Industrial Complex, a joint venture be-
tween the two Koreas that was suspended in
2016 amid disagreement over the North’s
nuclear and missile programmes.
South Korea spent at least 9.78 billion in
2018 to renovate the building, which stood
as a gleaming blue-glass structure in the oth-
erwise drab industrial city.
21 THEEDGE CEO MORNING BRIEF
W O R L D
Smoke billowing from the Kaesong Industrial Complex in Paju, South Korea today.
The first diplomatic
mission of its kind, the
inter-Korean liaison office
was established in 2018 as
part of a series of projects
aimed at reducing tensions
between the two Koreas.
When it was operating, South Koreans
worked on the second floor and North Ko-
reans on the fourth floor.The third floor held
conference rooms for meetings between the
two sides.When the office was closed in Jan-
uary, South Korea said it had 58 personnel
stationed there.
South Korea’s won weakened by about
0.7% against the dollar in offshore non-de-
liverable forward trade as reports emerged
of the building being blown up after onshore
spot trade finished.
Kim’s sister
Last Saturday, North Korean state media
reported that Kim Yo-jong, the sister of the
North Korean leader, who serves as a senior
official of the ruling Workers’ Party, had or-
dered the department in charge of inter-Ko-
rean affairs to “decisively carry out the next
action”.
“Before long, a tragic scene of the useless
north-south joint liaison office completely
collapsed would be seen,” she was report-
ed as saying.
Earlier today, North Korean state media
quoted the military as saying it had been
REUTERS
studying an “action plan” to re-enter zones
that had been demilitarised under a 2018
inter-Korean pact and “turn the front line
into a fortress”.
“Our army will rapidly and thoroughly
implement any decisions and orders of the
party and government,” the Korean People’s
Army said in a statement carried by KCNA.
South Korea’s defence ministry called for
North Korea to abide by the 2018 agree-
ment, under which both sides’ militaries
vowed to cease “all hostile acts” and they
dismantled a number of structures along the
heavily fortified Demilitarized Zone between
the two countries.
“We’re taking the situation seriously,”
ministry spokeswoman Choi Hyun-soo
told a briefing. “Our military is maintain-
ing readiness posture to be able to respond
to any situation.”
Several defector-led groups have regularly
sent back flyers, together with food, US$1
bills, mini radios, and USB sticks containing
South Korean dramas and news into North
Korea, usually by balloon over the border or
in bottles by river.
South Korea, which has been keen to im-
prove ties with the North, called on the de-
fectors to stop and plans legal action against
two of defector groups, saying their actions
fuel cross-border tensions, pose risks to res-
idents living near the border, and cause en-
vironmental damage.
But the groups have said they intend to
push ahead with their planned campaign
this week. South Korea’s President Moon
urged North Korea yesterday to keep peace
agreements reached by the two leaders and
return to dialogue.
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
China warms to
idea of four more
years of Trump
presidency
BY PETER MARTIN
Bloomberg
BEIJING (June 16): Donald Trump has
argued frequently of late that China is root-
ing for Joe Biden come November’s US
presidential election. In Beijing, however,
officials have come around to support four
more years of Trump.
Interviews with nine current and for-
mer Chinese officials point to a shift in
sentiment in favor of the sitting president,
even though he has spent much of the past
four years blaming Beijing for everything
from US trade imbalances to Covid-19.
The chief reason? A belief that the benefit
of the erosion of America’s postwar alliance
network would outweigh any damage to
China from continued trade disputes and
geopolitical instability.
While the officials shared concerns that
US-China tensions would rise regardless
of who was in the White House, they broke
largely into camps of those who empha-
sized geopolitical gains and those who
were concerned about trade ties. Biden,
the former vice president, was viewed as
a traditional Democrat who would seek to
shore up the US’s tattered multilateral re-
lationships and tamp down trade frictions.
“If Biden is elected, I think this could be
more dangerous for China, because he will
work with allies to target China, whereas
Trump is destroying US alliances,” said
Zhou Xiaoming, a former Chinese trade
negotiator and former deputy representa-
tive in Geneva. Four current officials ech-
oed that sentiment, saying many in the
Chinese government believed a Trump vic-
tory could help Beijing by weakening what
they saw as Washington’s greatest asset for
checking China’s widening influence.
The general assumption underlying their
views was that little could be done to halt
the slide in relations between the world’s
two biggest economies. Thus, China need-
ed to accelerate efforts to develop high-end
indigenous industries, expand into devel-
oping markets and look for opportunities
to work with nations in Europe and Asia
to counter any US isolation efforts.
Over the course of Trump’s term, the
realization has taken hold in Beijing that
opposition to China enjoys deep bipar-
tisan support in an otherwise-polarized
Washington. The coronavirus outbreak,
22 THEEDGE CEO MORNING BRIEF
W O R L D
The chief reason? A
belief that the benefit
of the erosion of
America’s postwar
alliance network
would outweigh any
damage to China
from continued
trade disputes and
geopolitical instability.
which was first discovered in the country’s
central city of Wuhan, has only hardened
American views toward Beijing.
‘Getting Worse’
“I don’t think the election will change
the relationship in a fundamental way.
The deep feeling in the US is that the
US should contain China,” Zhou said.
“Whether Trump wins, or Joe goes to
Washington, things will get worse.”
Chinese officials, eager to avoid a repeat
of their surprise when Trump upset former
Secretary of State Hillary Clinton in 2016,
have been pressing American contacts for
insights about who will win. Senior mem-
bers of the American business communi-
ty in Beijing say recent weeks have seen a
sudden up tick in outreach from well-con-
nected Chinese friends who in some cases
haven’t contacted them for years.
Although Republicans traditionally
emphasized economic ties with China,
Trump has moved the party in a more
confrontational direction, challenging the
country in virtually every area of the re-
BLOOMBERG
lationship from China’s territorial claims
in the South China Sea to trade, public
health, human rights and technology. The
Democrats have largely supported those
efforts, helping to pass legislation to sup-
port Hong Kong protesters and give more
military aid to Taiwan.
Even Biden, who had long backed an
“engagement” strategy with China, adopt-
ed a harsher tone as the Democratic pres-
idential primaries heated up. In recent
months, Biden has described President
Xi Jinping as a “thug,” lauded the “ex-
traordinary bravery” of democracy demon-
strators in Hong Kong and accused China
of “predatory” trade practices. He labeled
the mass detention of Uighur Muslims in
the far Western region of Xinjiang “un-
conscionable.”
Although Chinese officials continue to
steer clear of criticizing Trump directly,
Internet censors have allowed more na-
tionalistic-tinged criticism of the US to
circulate online. One foreign diplomat said
China’s foreign ministry was “combative”
and “angry” toward US officials.
“Trump has destroyed a lot of good-
will,” said Wang Huiyao, an adviser to Chi-
na’s cabinet and founder of the Center for
China and Globalization. “At the start of
the trade war, there were a lot of people
who were pro-US, but they are now sym-
pathetic to the hard-liners.”
Trump has sought to capitalize on his
reputation for confronting China in the
election, despite his early praise for Xi’s
handling of the coronavirus outbreak. In
April, he told Reuters that “China will do
JUMP TO PAG E 2 3
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
Apple’s App
Store, Apple
Pay targeted
by EU antitrust
regulators
BY FOO YUN CHEE
Reuters
BRUSSELS (June 16): Apple today found
itself the target of two EU antitrust inves-
tigations into its App Store and Apple Pay
as the bloc turned up the heat on online
gatekeepers over alleged anti-competitive
business practices aimed at blocking rivals.
The European Commission said one in-
vestigation would look into the mandatory
use of Apple's proprietary in-app purchase
system and rules preventing app develop-
ers from informing iPhone and iPad users
of cheaper options elsewhere.
The case followed a complaint from
Swedish music-streaming service Spotify
last year, which said Apple was unfairly re-
stricting rivals to its own music-streaming
service Apple Music. Another gripe was the
30% fee levied on app developers.
Spotify welcomed the EU probe, saying
it hoped regulators would treat the case
with urgency. A smaller rival filed a sim-
ilar grievance related to e-books and au-
diobooks in March this year.
FROM PAG E 22
anything they can to have me lose this
race,” asserting without evidence that Bei-
jing’s response to the virus was focused on
a desire to see him lose in November.
China’s foreign ministry reiterated its
longstanding position that it never seeks to
interfere in the internal affairs of other na-
tions. In a possible sign that the two sides are
seeking to manage the election year disputes,
US Secretary of State Michael Pompeo was
expected to meet top Chinese diplomatYang
Jiechi in Hawaii later Tuesday, according to
two people familiar with the plans.
US Stability
One Chinese official said the election result
didn’t matter since relations won’t improve
either way. China’s best hope, they said,
was that things didn’t deteriorate further.
Some in Beijing are wondering aloud
about Trump’s long-term impact on US
stability, pointing to surging coronavirus
cases, protests against police discrimination
and speculation about whether the pan-
23 THEEDGE CEO MORNING BRIEF
W O R L D
"It appears that Apple obtained a 'gate-
keeper' role when it comes to the distribu-
tion of apps and content to users of Apple's
popular devices," European Competition
Commissioner Margrethe Vestager said in
a statement.
The second case focuses on Apple's
terms and conditions on how its mo-
bile-payment service Apple Pay should be
used in merchants' apps and websites, and
also the company's refusal to allow rivals
access to the payment system.
Regulators are also concerned that Ap-
ple Pay, launched in 2014 as the company
diversified from sales of devices like iP-
demic election might end in chaos. “The
US as we know it may no longer exist,”
said Gao Zhikai, a former Chinese diplo-
mat and interpreter for Deng Xiaoping.
Trump’s “America First” policies
have created similar frictions in capitals
that have traditionally been friendlier to
the US, as he levies tariffs on key trading
partners, presses allies for greater spend-
ing on collective defense, withdraws from
multilateral agreements and supports the
UK’s break from the Europe Union. Chi-
nese officials privately acknowledge that
a Democratic administration might prove
more formidable if it worked with allies to
present a united front.
Even if a Biden presidency proved more
difficult for Beijing, two current Chinese
officials said he might open up more areas
for cooperation such as restoring US par-
ticipation in the Paris climate deal — ne-
gotiated while he was vice president under
then-President Barack Obama.
“He supports working on topics like
climate change, WTO reform and TPP,”
REUTERS
hones and iPads, is the only mobile-pay-
ment service allowed to use the "tap and
go" functionality on iPhones.
Apple was critical of the EU investi-
gations.
"It's disappointing the European Com-
mission is advancing baseless complaints
from a handful of companies who simply
want a free ride, and don't want to play
by the same rules as everyone else," the
iPhone maker said in a statement.
"We don't think that's right — we want
to maintain a level playing field where an-
yone with determination and a great idea
can succeed."
said Wang. “There are areas where we can
cooperate.”
On a more personal level, some Chinese
officials involved in trade negotiations with
the Trump administration support a Bid-
en victory simply so they can spend more
time with their families, according to one
person familiar with their thinking. Chi-
na’s trade team shows up to work looking
exhausted, the person said.
Both sides may find it difficult to escape
the pattern of confrontation no matter who
wins. Huawei Technologies Co executive
Meng Wanzhou is still detained in Canada
awaiting a decision on a US extradition
request, while Beijing’s plan to impose a
security law on Hong Kong has caused
outrage in Congress and brought the coun-
tries’ “phase one” trade deal into question.
“Nowadays in China people are becom-
ing more and more clear about the US’s
objectives,” said Zhou, the former Chi-
nese representative in Geneva. “We have
not yet reached the darkest hour in the
relationship.”
 W E D N E S DAY J U N E 1 7 , 2 0 2 0
M A R K E T S
CPO RM2,39667 OIL US$40.550.83 RM/USD 4.2762 RM/SGD 3.0737 RM/AUD 2.9585 RM/GBP 5.4049 RM/EUR 4.8454
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
AT SYSTEMATIZATION 518.67 0.010 0.145 262.50 325.8
NETX HOLDINGS 472.05 0.000 0.010 -50.00 50.6
PRESTARIANG 406.86 0.140 0.465 12.05 224.3
UCREST 237.36 0.075 0.210 44.83 99.0
BARAKAH OFFSHORE PETROLEUM 214.94 0.020 0.040 60.00 33.4
CONNECTCOUNTY HOLDINGS 189.80 -0.005 0.325 261.11 121.0
BUMI ARMADA 142.75 0.025 0.245 -53.77 1,442.0
MINETECH RESOURCES 137.84 0.010 0.290 241.18 307.3
VELESTO ENERGY 129.17 0.010 0.160 -57.89 1,314.5
COMPUGATES HOLDINGS 111.94 0.005 0.020 0.00 51.5
KNM GROUP 111.85 0.030 0.230 -38.67 601.4
KARYON INDUSTRIES 108.16 0.035 0.215 22.86 102.3
HIBISCUS PETROLEUM 103.49 0.060 0.655 -30.32 1,040.3
KEY ASIC 99.03 0.050 0.130 160.00 137.6
ICON OFFSHORE 95.73 0.010 0.125 -27.86 330.2
OPENSYS M 81.30 0.180 0.680 83.78 202.6
K-ONE TECHNOLOGY 75.16 0.020 0.495 147.50 360.8
JHM CONSOLIDATION 68.39 0.295 1.190 -28.74 662.4
AIRASIA GROUP 67.85 0.060 0.925 -45.59 3,091.3
MTOUCHE TECHNOLOGY 66.17 0.005 0.070 -30.00 46.3
Date as compiled on Jun 16, 2020 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
BARAKAH OFFSHORE PETROLEUM 0.040 100.00 214,937.3 60.00 33.4
KEY ASIC 0.130 62.50 99,033.3 160.00 137.6
UCREST 0.210 55.56 237,361.9 44.83 99.0
EA HOLDINGS 0.015 50.00 180.0 50.00 76.1
DOLOMITE CORP 0.130 44.44 15,514.6 4.00 40.7
PRESTARIANG 0.465 43.08 406,858.1 12.05 224.3
IDIMENSION CONSOLIDATED 0.035 40.00 17,612.8 40.00 9.5
MLABS SYSTEMS 0.035 40.00 10,407.7 -12.50 32.1
PASUKHAS GROUP 0.035 40.00 5,681.5 0.00 28.5
OPENSYS M 0.680 36.00 81,302.1 83.78 202.6
COMPUGATES HOLDINGS 0.020 33.33 111,940.4 0.00 51.5
EDUSPEC HOLDINGS 0.020 33.33 52,775.6 -20.00 48.3
ANZO HOLDINGS 0.060 33.33 54,338.3 140.00 52.8
TANCO HOLDINGS 0.060 33.33 9,148.6 20.00 70.6
JHM CONSOLIDATION 1.190 32.96 68,392.8 -28.74 662.4
SMRT HOLDINGS 0.085 30.77 17,155.2 0.00 34.4
TPC PLUS 0.305 29.79 26.4 0.00 71.3
MINDA GLOBAL 0.045 28.57 2,666.6 -25.00 55.8
HIAP HUAT HOLDINGS 0.115 27.78 7,321.1 9.52 38.0
HB GLOBAL LTD 0.120 26.32 53,093.5 84.62 56.2
Date as compiled on Jun 16, 2020 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
TOP GLOVE CORP 15.960 0.760 20,709.6 239.57 42,752.7
NESTLE (MALAYSIA) 139.200 0.700 51.6 -5.31 32,642.4
SUPERMAX CORP 7.320 0.450 38,012.7 426.62 9,453.2
HARTALEGA HOLDINGS 12.040 0.360 10,995.1 119.71 40,791.6
GREATECH TECHNOLOGY 3.800 0.320 4,551.1 58.33 2,378.8
JHM CONSOLIDATION 1.190 0.295 68,392.8 -28.74 662.4
COMFORT GLOVE 2.850 0.280 49,756.6 260.76 1,661.4
AEON CREDIT SERVICE M 9.600 0.270 137.6 -32.11 2,434.9
RUBBEREX CORP M 2.990 0.240 6,864.6 453.70 829.5
PRESS METAL ALUMINIUM HOLDIN 4.740 0.220 8,219.6 1.94 19,140.6
UWC 3.660 0.220 7,679.1 71.56 2,013.7
DUFU TECHNOLOGY CORP 4.830 0.220 1,065.8 49.07 1,238.0
BRITISH AMERICAN TOBACCO 10.880 0.200 542.2 -27.85 3,106.6
DUTCH LADY MILK INDS 43.400 0.200 2.2 -11.61 2,777.6
ALLIANZ MALAYSIA 14.300 0.180 13.0 -11.35 2,529.5
LINGKARAN TRANS KOTA HLDGS 4.200 0.180 208.9 -8.50 2,231.7
OPENSYS M 0.680 0.180 81,302.1 83.78 202.6
MEGA FIRST CORP 6.180 0.180 1,152.5 20.94 2,812.1
TENAGA NASIONAL 12.000 0.180 2,270.6 -5.63 68,455.2
SAM ENGINEERING & EQUIPMENT 5.760 0.160 247.9 -27.46 778.6
Date as compiled on Jun 16, 2020 Source: Bloomberg
24 THEEDGE CEO MORNING BRIEF
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 25763.16 157.62 0.62 INDONESIA 4986.46 170.12 3.53
S&P 500 3066.59 25.28 0.83 JAPAN 22582.21 1051.26 4.88
NASDAQ 100 9776.89 113.12 1.17 KOREA 2138.05 107.23 5.28
FTSE 100 6210.80 146.10 2.41 PHILIPPINES 6281.75 117.93 1.91
AUSTRALIA 6058.10 228.10 3.91 SINGAPORE 2670.69 56.81 2.17
CHINA 4014.57 59.58 1.51 TAIWAN 11511.64 205.38 1.82
HONG KONG 24344.09 567.14 2.39 THAILAND 1367.09 25.10 1.87
INDIA 33611.37 382.57 1.15 VIETNAM 856.13 23.66 2.84
Date as compiled on Jun 16, 2020 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
PEGASUS HEIGHTS 0.010 -33.33 8,505.8 0.00 100.0
ASIA MEDIA GROUP 0.045 -18.18 1,208.9 -40.00 10.8
PINEAPPLE RESOURCES 0.240 -15.79 0.4 -22.58 11.6
SBC CORPORATION 0.360 -10.00 154.3 -17.24 92.9
VSOLAR GROUP 0.050 -9.09 43,375.8 78.57 20.5
FINTEC GLOBAL 0.055 -8.33 15,999.0 0.00 53.1
MERIDIAN 0.065 -7.14 8,778.3 0.00 37.7
PAOS HOLDINGS 0.275 -6.78 30.0 -25.68 49.8
GOLDEN LAND 0.345 -6.76 100.0 -29.59 74.0
SMILE-LINK HEALTHCARE GLOBAL 0.070 -6.67 500.0 -17.65 70.1
DPS RESOURCES 0.075 -6.25 7,320.6 -6.25 44.1
OVERSEA ENTERPRISE 0.150 -6.25 0.3 15.38 36.4
UMS-NEIKEN GROUP 0.700 -6.04 15.0 -14.63 55.0
NATIONWIDE EXPRESS HOLDINGS 0.090 -5.26 20.5 -60.00 11.1
CYL CORP 0.285 -5.00 118.5 -18.57 28.5
NWP HOLDINGS 0.120 -4.00 20.0 9.09 51.8
KWANTAS CORP 0.480 -4.00 129.5 -40.00 149.6
HEXTAR GLOBAL 0.605 -3.97 4,146.1 -5.47 487.8
K SENG SENG CORP 0.380 -3.80 67.8 -9.52 36.5
ENGTEX GROUP 0.520 -3.70 2,366.3 -30.67 227.7
Date as compiled on Jun 16, 2020 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
FRASER & NEAVE HOLDINGS 32.340 -0.220 18.1 -7.18 11,861.6
APEX HEALTHCARE 2.780 -0.100 358.5 24.11 1,316.7
CARLSBERG BREWERY MALAYSIA B 23.900 -0.080 133.6 -18.71 7,307.4
HONG LEONG FINANCIAL GROUP 14.000 -0.080 95.2 -17.16 16,033.4
BATU KAWAN 14.340 -0.060 15.4 -17.78 5,720.8
IJM CORP 1.900 -0.050 956.2 -12.44 6,896.0
KLUANG RUBBER CO (M) 3.140 -0.050 7.4 -7.65 197.7
UMS-NEIKEN GROUP 0.700 -0.045 15.0 -14.63 55.0
PINEAPPLE RESOURCES 0.240 -0.045 0.4 -22.58 11.6
PETRONAS GAS 17.560 -0.040 1,745.6 6.31 34,746.5
SBC CORPORATION 0.360 -0.040 154.3 -17.24 92.9
GAMUDA 3.600 -0.040 1,529.3 -7.69 9,048.7
UNITED MALACCA 4.520 -0.030 14.7 -15.51 948.2
GOLDEN LAND 0.345 -0.025 100.0 -29.59 74.0
HEXTAR GLOBAL 0.605 -0.025 4,146.1 -5.47 487.8
KUALA LUMPUR KEPONG 22.400 -0.020 422.6 -9.68 24,157.9
HONG LEONG BANK 14.780 -0.020 938.6 -14.57 32,038.9
KESM INDUSTRIES 7.460 -0.020 32.2 -16.93 320.9
KWANTAS CORP 0.480 -0.020 129.5 -40.00 149.6
ENGTEX GROUP 0.520 -0.020 2,366.3 -30.67 227.7
Date as compiled on Jun 16, 2020 Source: Bloomberg