MALAYSIA’S APRIL UNEMPLOYMENT SPIKES TO 5%,

THE HIGHEST IN 30 YEARS p5

T U E S DAY, J U N E 1 6 , 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 1/2020

CEOMorningBrief HOME: Glove stocks the selling targets after strong rally p4
Court rejects Najib’s attempt to delay trial pending disposal of bid to recuse Sri Ram p15
WORLD: Hong Kong’s rich are preparing for a worst-case scenario p21

Jan 2 1,498.83
2020
June 15,
2020

KLCI SLIDES
3.05% AS
CONCERNS
MOUNT OVER PNB’S CEO
SECOND WAVE
OF COVID-19
JALIL RASHEED
INFECTIONS RESIGNS
Report on Page 2. Report on Page 6.

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 T U E S DAY J U N E 1 6 , 2 0 2 0
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KUALA LUMPUR (June 15): Mount-
ing concerns over the second wave of
Covid-19 infections, particularly in Chi-
na, spooked the equity bears in Asian
markets, including Bursa Malaysia,
whose benchmark index had its biggest
single-day drop in three months.
A plunge of over 900 points in the
Dow Jones Industrial Average futures
added fuel to the selling in the after-
noon.
The FBM KLCI shed 47.19 points
or 3.05% to a two-week low of 1,498.93
points. The index was on a decline for
the third consecutive day.
The fall in the FBM Small Cap In-
dex, excluding only the top 100 larg-
est stocks in terms of market capitalisa-
tion, was even bigger. It skidded 610.76
points or 5.06% to 11,457.15 points.
On the home front, news of unem-
ployment rate soaring to a 30-year high
of 5% in April 2020 compounded the
selling on the local market.
Rakuten Trade head of research Ken-
ny Yee described the selling today as
“drastic”. Nevertheless, he said prof-
it-taking activities were expected as the
market had been overbought recently.
“It is the right time for the market to
consolidate. There is still further down-
side,” Yee told theedgemarkets.com.
In the near term,Yee expects the mar-
ket to take its cue from Wall Street, add-
ing that market sentiment will be cau-
tious and jittery after the selling today.
The next immediate support level of
the KLCI is around the 1,490-level and
the 1,470-level next, said Yee.
Asked if the rally was over for the
benchmark index, Yee did not think so,
saying that the market was just “due
for a correction”, adding that the index
had gone up over 300 points from the
trough in late March.
Nonetheless, he advised investors to
trade with caution.
Meanwhile, Malacca Securities Sdn
Bhd analyst Kenneth Leong was of the
view that volatility in the market would
be the norm in the near future, unless
there was further economic stimulus or
2 THEEDGE CEO MORNING BRIEF
published by publisher + . Ho Kay Tat
ceo
editor - in - chief
. Azam Aris
chief commercial officer . Sharon Teh
(266980-X) chief operating officer . Lim Shiew Yuin
editors . Kathy Fong . Jenny Ng .
. 603-77218000
tel
Tan Choe Choe . Lam Jian Wyn
Level 3, Menara KLK, 1 Jalan PJU 7/6,
Mutiara Damansara, 47810, Petaling Jaya, to contact editors : eeditor@bizedge.com
Selangor, Malaysia to advertise : advertising@bizedge.com
H O M E
KLCI slides
news of success in the development of
a Covid-19 vaccine.
3.05% as
“Unlike the previous recovery of the
FBM KLCI that was mainly fuelled by
concerns mount
glove heavyweights, the cap on margin
financing for glove counters is expected
over second
to take some steam away from the glove
rally,” he added.
wave of Covid-19
Among the 30 component stocks
of KLCI, Top Glove Corp Bhd, which
infections
was the best performing stock year to
date, shed RM1.70 or 10% to close at
RM15.20, followed by Petronas Dagan-
gan Bhd, which slid RM1.50 or 6.82%
BY WONG EE LIN to RM20.50, and Har talega Hold-
theedgemarkets.com ings Bhd dropped 84 sen or 6.71% to
RM11.68.
The market trading volume stood at
FBM KLCI 9.07 billion shares worth RM5.32 bil-
lion traded. Losers led gainers by 1,107
to 159, while 227 counters remained
1,700 unchanged.
All indices on Bursa Malaysia were in
1,600 the negative territory and the worst hit
was Bursa Malaysia healthcare index,
1,498.83 which slipped 173.38 points or 7.26%
1,500
to 2,215.18 points today.
Across Asia, most regional indices
1,400
were in the red. South Korea’s Kospi fell
4.76%, followed by Japan’s Nikkei 225,
1,300
which slid 3.47% while Hong Kong’s
Hang Seng was down 2.16%.
1,200 Reuters wrote that Asian shares and
Jan 2, 2020 June 15, 2020
Wall Street futures fell today as growing
Source: Bloomberg
fears of a second wave of Covid-19 in-
fections revived economic worries, while
underwhelming data from China also
weighed on investor sentiment.
Today’s losses came on the heels of
a strong global rally since late March,
fuelled by the central bank and fiscal
It is the right time stimulus and optimism as countries
for the market to gradually lift restrictions put in place
consolidate. There is to curb the spread of Covid-19, said
still further downside.” the newswire.
— Rakuten Trade head However, concerns are escalating over
a second wave of infections as Beijing
of research Kenny Yee
reported its second consecutive day of
record Covid-19 cases, while new cases
and hospitalisations in record numbers
swept through more US states, Reuters
added.
 T U E S DAY J U N E 1 6 , 2 0 2 0 3 THEEDGE CEO MORNING BRIEF

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 T U E S DAY J U N E 1 6 , 2 0 2 0 4 THEEDGE CEO MORNING BRIEF

H O M E

Glove stocks the selling targets

after strong rally
BY LAI YING YI
theedgemarkets.com Investors take profit on glove stocks that have soared several folds

KUALA LUMPUR (June 15): Glove stocks Share price (June 15)
were the selling targets on Bursa Malaysia
RM6.87 -13.15
today with many of them plummeting more
than 10%, although the rising risk of a sec- RM1.27 -13.01
ond wave of infections in China could mean
another boost to rubber glove demand. RM2.75 -12.42
Those still bullish took the sell-off as RM2.57
-12.29
glove stocks entering a “consolidation
phase”, saying it was a healthy pullback af- RM15.20 -10.06
ter the strong march to record highs.
Leading the decline was Supermax RM8.19 -8.80
Corp Bhd, which slid 13.15% or RM1.04 RM11.68 -6.71
to RM6.87, followed by Careplus Group
Bhd, shedding 13% or 19 sen to RM1.27, -15 -12 -9 -6
while Rubberex Corp (M) Bhd was down
12.42% or 39 sen at RM2.75.
Comfort Gloves Bhd dived 12.3% or 36 day’s price performances for glove stocks
sen to RM2.57 and Top Glove Corp Bhd are considered very normal.”
dropped 10.06% or RM1.70 to RM15.20. “It is in fact healthy in nature, as most
The other glove counters fell by less than investors involved in glove counters would
10%, with Hartalega Holdings Bhd down have made handsome gains throughout the
6.71% or 84 sen at RM11.68 and Kossan rally,” he told theedgemarkets.com.
Rubber Industries Bhd was down 8.8% or Given the strong outlook issued by most
79 sen at RM8.19. glove companies during the latest quarter-
A quick glimpse of the glove stocks’ per- ly disclosures, Wong said, “Today’s decline
formances shows that the biggest falls were could present an entry opportunity for those
recorded by the counters that had gone up who missed the boat previously.”
the most on a year-to-date basis. Rakuten Trade Sdn Bhd research vice
Areca Capital Sdn Bhd chief executive president Vincent Lau concurred that with-
officer Danny Wong Teck Meng said, “To- out a functional vaccine in sight yet in the
Percentage change (%)
Supermax Corp Bhd
Careplus Group Bhd
Rubberex Corp Bhd
Comfort Gloves Bhd
Top Glove Corp Bhd
Kossan Rubber Industries Bhd
Hartalega Holdings Bhd
-3 0
fight against Covid-19, glove stocks would
continue to attract interest as the strong de-
mand for gloves would sustain for a pro-
longed period of time.
“The market has been on a hyperbolic
uptrend in the last few weeks, which is a
sign of overheating, and one could expect
the market to be poised for a healthy pull-
back,” Lau said.
Nevertheless, Areca’s Wong expects mar-
ket volatility to increase in the near term.
He advised investors to consider diversify-
ing their stock holdings across a few sectors,
and avoid overexposure to a single sector.
 T U E S DAY J U N E 1 6 , 2 0 2 0
Malaysia’s April unemployment
spikes to 5%, the highest in 30 years
BY SYAHIRAH SYED JAAFAR
theedgemarkets.com
KUALA LUMPUR (June 15): Malaysia’s
labour market felt the brunt of the movement
control order (MCO) implementation, with
unemployment in April spiking to 5%, the
highest since 1990.
Economists said it is likely to go higher
in the coming months.
Bank Islam Malaysia Bhd chief econo-
mist Dr Afzanizam Abdul Rashid and Sun-
way University economics professor DrYeah
Kim Leng, when contacted, both said the
rate came in within expectations.
Afzanizam said the unemployment rate
should subside in the coming months as the
economy gradually reopens, following the
implementation of the Conditional MCO
from May 4 and the Recovery MCO from
June 10.
The statistics department, in a statement
today, said the number of unemployed per-
sons went up 48.8% year-on-year (y-o-y) to
778,800 in April.
The labour force grew marginally by
0.6% or 99,100 persons to 15.71 million
persons in April 2020, the lowest growth
since September 2014.
In tandem with this, the working popula-
tion decreased by 156,400 persons (-1.0%)
y-o-y to 14.93 million persons.
The department said the most affected
employed persons were in the manufacturing
and services sectors, namely accommodation
and food & beverage; arts, entertainment &
recreation and other services such as beauty
centres and salons.
Yeah said he was expecting the unem-
ployment rate to hover between 5% and 6%
during the MCO period due to the shut-
down of the economy which caused many
businesses to consolidate their workforces.
However, he said as businesses are still be-
ginning to adjust to the economic downturn,
the unemployment rate is therefore expected
to be worse in the second quarter of the year.
“Although the Recovery MCO allows
businesses to operate, the challenge still lies
in the hard hit sectors such as aviation, tour-
ism and small and medium enterprises who
will continue the consolidation of business.
Some will also face liquidation even.
“So we expect to see a further increase
in unemployment in the coming months to
6% to 7%. Whether it will stabilise will de-
pend on the economic recovery. Some early
indications can be seen in manufacturing
5 THEEDGE CEO MORNING BRIEF
H O M E
778,800 Malaysians were unemployed in April
(‘000) Number of unemployed
7.4
800
600
461.9
3.4 3.7
400
182.4
200
0 -
1982
1985
1990
1995
2000
Source: Department of Statistics Malaysia
production, which returned to pre MCO
levels,” he told theedgemarkets.com
He added that Malaysia’s unemployment
rise cannot be compared with advanced
economies that are facing the epicentre of
the virus such as the U.S. and Europe, and
which saw a double digit rise in unemploy-
ment.
“Job creation in this economy is also on
the decline. Demand patterns are also chang-
ing, so businesses will need to adapt to these
changes,” he added.
Afzanizam said the government’s wage
subsidy programme which aims to incen-
tivise employers to retain their workers, will
help sustain employment.
“Should the reopening of the economy
become more consistent, we can expect de-
mand for labour to gradually rise. Employ-
ers would want to retain their workers as
finding new employees is equally difficult.
Rate of unemployed (%)
8.0
778.8
7.0
610.5 6.0
5.0
4.0
3.0
2.0
1.0
2005
2010
2015
Jan 2020
Apr 2020
[Furthermore,] companies would gain their
economies of scale once the demand start
to picks up,” Afzanizam said.
Chief Statistician Datuk Seri Dr Mohd
Uzir Mahidin said Malaysia’s labour market
in May is expected to be further affected,
following the implementation of the Con-
ditional MCO starting May 5, as businesses
were still not fully in operation.
“During this period, companies will have
the tendency to reduce the [number] of em-
ployees to ease the burden of operating costs,
despite predicting a decline in their business
revenue,” Mohd Uzir said.
He added that as the Recovery MCO
kicked off on June 10, the reactivation of
businesses for more sectors and inter-state
travels were allowed, which is predicted to
spur businesses and steer the improvement
of the job market, especially in the travel and
tourism related industries.
 T U E S DAY J U N E 1 6 , 2 0 2 0
PNB’s CEO Jalil Rasheed resigns
KUALA LUMPUR (June 15): Permoda-
lan Nasional Bhd’s (PNB) board of direc-
tors today announced it has accepted the
resignation of its president and group chief
executive officer (CEO) Jalil Rasheed ef-
fective today.
“The board of directors and leadership
team of PNB conveyed their appreciation
to Jalil for his leadership and contributions
during his tenure with PNB. PNB wishes
Jalil every success in his future endeavours,”
PNB said in a three-paragraph statement.
“The board has also approved the ap-
pointment of the successor and the an-
nouncement will be made upon receipt of
the requisite regulatory approvals,” the asset
management group revealed.
Jalil’s exit as PNB’s CEO was reported
on the latest edition of The Edge Weekly on
Saturday (June 13). His exit makes him the
CEO with the shortest stint at the RM280
billion fund, having been appointed to the
role just eight months ago in October 2019.
While PNB did not dwell on Jalil’s suc-
cessor, theedgemarkets.com reported yes-
terday that Khazanah Nasional Bhd deputy
managing director Ahmad Zulqarnain Onn
is a front runner for the post.
Speculation is rife about the reasons be-
hind Jalil’s exit, with some alleging that it
was driven by political motives.
Jalil was appointed PNB CEO during
the Pakatan Harapan’s federal government
administration, led by former prime min-
ister Tun Dr Mahathir Mohamad. The ad-
ministration fell in February following Dr
Mahathir’s surprise resignation.
In his farewell note to PNB staff, Jalil
10 corporate
NEWSBREAK
PNB CEO Jalil said to be leaving
BY THE EDGE MALAYSIA
S
tate-controlled unit trust
fund Permodalan Nasion-
al Bhd (PNB) could have a
new president and CEO,
sources say.
It is understood that Jalil
Rasheed, 38, who was a surprise
appointment to the post just sev-
en months ago, will be leaving.
A board meeting of PNB’s di-
rectors is expected to be called
soon to deliberate the matter.
Tan Sri Zeti Akhtar Aziz is PNB
chairman.
Sources say some issues sur-
rounding Jalil’s appointment as
CEO last October could be one
reason for the departure.
PNB, which has as much as Malayan Banking Bhd, Sime Dar-
RM280 billion in funds under by Bhd, Sime Darby Plantations
management, is the controlling Bhd, Sime Darby Property Bhd, S
FLASHBACK: June 15, 2020
shareholder of companies such as P Setia Bhd, UMW Holdings Bhd
MyEG partners S5 to strengthen bid for NIIS contract
Questions arise about the mysterious seller of the S5 stake, owned by BVI companies
BY KAMARUL AZHAR
T
he proposed acquisition of a 10%
stake in S5 Holdings Inc by My EG
Services Bhd (MyEG) will strength-
en the group’s chance to win the
RM1.8 billion National Integrated
Immigration System (NIIS) contract, say
industry observers.
This is because S5’s expertise in the pro-
vision of technological systems and services
for national security has been well proven.
The company has rolled out national secu-
rity systems in countries such as Malaysia,
Myanmar, India, Bangladesh and Nepal.
“It is obvious now who is going to win
the NIIS contract,” says an official whose
company is also one of the bidders of the
contract to develop an integrated immigra-
tion control system to be deployed at the
country’s entry points such as airports and
land crossings.
Contacted by The Edge for comment on
the synergies of the partnership, a MyEG
spokesperson says S5 is a specialist in bor-
der security control, specifically in the pro-
The board has
vision of systems for the processing and
verification of travellers arriving in and
leaving the country.
“As this is a service segment in which
MyEG is not involved, the partnership is com-
also approved the
plementary and mutually beneficial for both
companies, bringing together each other’s
unique expertise,” the spokesperson says.
The announcement had also excited
the market. A day after the deal was an-
appointment of
nounced by MyEG, its share price jumped
3.65% to close at RM1.42 on June 11. The
counter continued its ascent on June 12,
closing at RM1.45.
Meanwhile,the share price of MYEG’s com-
the successor and
petitor and another bidder for the NIIS contract,
HeiTech Padu Bhd,fell 5.4% to RM1.06 on June 11.
The stock continued to slide on Friday,settling at
RM1.04.
To recap, on June 10, MyEG announced
the announcement
that its wholly-owned subsidiary My EG
Capital Sdn Bhd had entered into a share
will be made upon
receipt of the requisite
regulatory approvals.”
6 THEEDGE CEO MORNING BRIEF
H O M E
BY ADAM AZIZ
theedgemarkets.com
Jalil was appointed
to the position by
the Pakatan Harapan
government
and Velesto Energy Bhd , held di-
rectly and via its units under the
Amanah Saham funds.
Collectively, these companies
sale agreement (SSA) and a put and call op-
tions agreement (PCOA) with Merrington
Assets Ltd (MAL) for the purchase of 118
million ordinary shares in S5, represent-
ing 10% of its issued and paid-up share
capital for a total purchase consideration
of RM90 million.
RM75 million of the purchase considera-
tion will be paid in cash, and the rest, in the
issuance and allotment of MyEG’s shares to
MAL at the issue price of RM1.20 per share.
According to the announcement, MAL
owns 20% of the issued and paid-up shares
of S5, while NSA Technology Sdn Bhd owns
a 76.4% stake in the company. The rest is
owned by Avocat Sdn Bhd.
The directors of S5 are Tuan Syed Mo-
hammad Hafiz Syed Razlan, Aaron Loke
Khy-Min, Kurian Thomas Jacob Thomas,
Chan See Siang and Effendi Ramli. It has
two subsidiaries — S5 Systems Sdn Bhd and
S5 Code Solutions Kazakhstan LLP.
S5 Systems’ business activity is in the
provision of national security solutions in-
volving the provision of security technology
intellectual property as well as the develop-
ment and customisation of solutions and
systems, consultancy and support.
The announcement states that the net
assets of S5 as at June 30, 2019 stood at
RM21.7 million, while its net profits for the
financial year ended June 30, 2019 (FY2019)
was RM63.2 million.
According to data from the Companies
Commission of Malaysia (SSM) in FY2019,
S5 Systems reported revenue of RM116.86
million, 17.7% lower than the preceding
year’s revenue of RM147.75 million. At the
same time, its profit after tax (PAT) fell 41%
to RM63.4 million.
S5 Systems has been profitable over the
last five financial years to June 30, 2019
(FY2014 to FY2019,with no record for FY2017).
Over the last five years, the company’s PAT
ranged between RM7.23 million recorded
in FY2015 and RM152.84 million in FY2014.
Over the last three years, the company
has also been consistently paying dividends
— PNB
THE EDGE FILE PHOTO
claimed he was harassed and that made
him increasingly worry about the well-being
of his family. However, he did not address
allegations that he misrepresented his ac-
ademic qualifications.
“The last straw for me was the harass-
ment I had to endure from hate calls from
MALAYSIA JUNE 15, 2020
unknown numbers, hacking of my other
SAM FONG/THE EDGE
under the PNB banner have a operations and business in the corporate email account and my LinkedIn
market capitalisation of a few country. He took on the role of
profile,” he said.
hundred billion ringgit, making head of equity for four years, be-
it the largest investor in the local fore eventually taking over as CEO
market behind the Employees of the syariah business in 2010.
Provident Fund. At 31, he has his second stint
Jalil, who was appointed to the as CEO at Invesco Ltd, a US in-
He acknowledged that being at the helm
position by the Pakatan Harapan vestment firm operating in Sin-
government, has been making gapore, and remained with the
waves with his young and vibrant company for 6½ years.
brand of leadership. When he took over as PNB
of PNB would mean making decisions that
Just last week, he was inter- CEO, he replaced another re-
viewed on a live radio show in spected young corporate leader,
which he sought to map out his Datuk Abdul Rahman Ahmad,
plans for PNB, long seen as a key who was moved to Sime Darby
investor in Malaysian properties Bhd as non-executive chairman.
are “riddled with difficulties and some will
and equities, and was his usual Abdul Rahman assumed the po-
personable, confident self. sition of CIMB Group Holdings
He started out at Aberdeen Bhd’s group CEO effective June 1.
Standard Investments in London Jalil has the distinction of be-
and spent the first five years of ing the youngest CEO at PNB and,
be unpopular”.
his career with the outfit in var- if he departs, he will also have
ious countries. Jalil returned to the distinction of being the CEO
Malaysia to expand Aberdeen’s with the shortest tenure. E
“The easy route would be to continue
enjoying the perks of the office, whilst bat-
tling with your own good conscience. I have
ABSOLUTELY STOCKS
MY E.G. SERVICES BHD While the deal is seen as positive for
MyEG, questions arise as to who is the ul-
timate shareholder of the S5 stake that is
always believed that no individual is larger
being sold.
This is because checks on SSM show that
the shareholders of MAL — Vent Millions
Sdn Bhd, Barolagun Sdn Bhd and Venstrait
Sdn Bhd — and others are ultimately owned
than an institution,” he said.
by companies based on the island of Torto-
la, in the British Virgin Islands.
“Since S5 is involved in the bidding
for NIIS, its ultimate shareholder should
be revealed. This is because NIIS is a ma-
“I have no intention to drag PNB into
jor public procurement contract, and the
public has the right to know who will
Valuation score* 1.50
eventually be awarded the contract,” says
Fundamental score** 2.30
an observer.
TTM P/E (x) 20.53
this. PNB must be safeguarded at all costs.
Asked about the identity of the share-
TTM PEG (x) 0.09 holders from whom MyEG is buying the
P/NAV (x) 7.01 stake in S5, the spokesperson that The Edge
TTM Dividend yield (%) 0.35 contacted referred to the information in
Market capitalisation (mil) 5,008.59 the announcement.
Hence I have chosen the difficult path, one
Shares outstanding (ex-treasury) mil 3,454.20 Besides MyEG, S5 and HeiTech Padu, other
Beta 1.31 companies rumoured to have been invited
12-month price range 0.80-1.68 to bid for the contract include Scicom (MSC)
Bhd, Iris Corp Bhd and Datasonic Group Bhd.
*Valuation score - Composite measure of historical return & valuation
**Fundamental score - Composite measure of balance sheet strength NIIS is the new iteration of the scrapped
that is lonely and devastating for my family
& profitability
Sistem Kawalan Imigresen Nasional (SKIN),
Note: A score of 3.0 is the best to have and 0.0 is the worst to have
which was awarded to Prestariang Bhd in
2017 for a 15-year concession worth RM3.5
to its shareholder S5, contributing RM60 billion. In mid-2018, the contract was
million in FY2016, followed by RM114.1 mil- scrapped by the Home Ministry, then un-
lion in FY2018 and RM102 million in FY2019.
S5 Systems has been in the news in the
past few years. In July 2016, Goodway Inte-
grated Industries Bhd proposed to acquire
der current Prime Minister Tan Sri Muhyid-
din Yassin, as it was deemed too expensive.
Prestariang has taken the government
to court to recover RM732.86 million in
and I,” he added.
During his tenure, Jalil oversaw work-
the company for RM900 million from its compensation.
then 100% parent company NSA Technology, Under the SKIN concession contract,
to be satisfied via share issuance. Prestariang was required to design, deliver,
The proposal was withdrawn in February continuously maintain and provide sched-
2017. NSA Technology was then controlled uled upgrades for a new immigration and
place transformation at the conservative
by Datuk Seri Johann Young through his border control system that was supposed
company Tenang Masyhur Sdn Bhd. to replace the existing Malaysian Immi-
SSM data shows that NSA Technology is gration System (MyIMMS).
no longer owned by Tenang Masyhur but MyIMMS is maintained by HeiTech
by a Labuan-incorporated company called Padu, which is controlled by Permodalan
NSA Technology (L) Ltd. It is not known
who owns NSA Labuan.
Nasional Bhd, but the contract will expire
in August. E
PNB, as well as reorganisation of the firm
and the Focus-4 strategic plan spanning
from 2020 to 2022.
“I hope I have made a positive contribution
to PNB and you as employees feel the change.
I wanted to make PNB cool again, and feel
we have achieved that somewhat,” Jalil said.
“I do not regret at all my decision to
join PNB.The past nine months have been
rewarding for me. I’ve learnt so much and
had the privilege to know you all better,”
Jalil said.
 T U E S DAY J U N E 1 6 , 2 0 2 0
Were there lapses in the process of
appointing the PNB CEO last September?
BY THE EDGE
theedgemarkets.com
KUALA LUMPUR (June 15): The Edge
Malaysia Weekly’s report at the weekend
on the possible departure of 38-year-old
Jalil Rasheed as the CEO of Permodalan
Nasional Bhd (PNB) had triggered a lot
of chatter on social media. There has been
much speculation on the reasons, and de-
bate whether those reasons are justifiable.
Datuk Abdul Kadir Jasin, who was me-
dia advisor to former Prime Minister Tun
Dr Mahathir Mohamad, took to his blog
to write that “the reason they cooked up
is his academic qualification, which some
authorities said was a matter of interpre-
tation.”
Kadir alleges political motives behind
what is happening.
Jalil had in various disclosures stat-
ed that he graduated with a Bachelor’s
of Science (Honours) in Accounting
and Finance from the London School of
Economics and Political Science (LSE),
UK. He had also stated that from 2013
till 2019, he was the CEO of South East
Asia for Invesco Ltd and a member of
Invesco’s Global Investment Committee
and Global Management Committee. And
before that, he spent 10 years in Aberdeen
Asset Management, and as CEO of its Is-
lamic Asset Management unit.
The question is, are his claims true?
Because his education, experiences, knowl-
edge and track record must have been a
major basis for his appointment in the first
place. Such due diligence and governance
are even more important for an institution
like PNB.
PNB is one of the largest fund manage-
ment companies in Malaysia with RM300
billion of funds under management, repre-
senting the savings of more than 14 million
Malaysians. It has more than 1,500 direct
employees. It is the controlling sharehold-
er of strategic and large national corpora-
tions, like Malayan Banking, Sime Darby,
UMW, SP Setia, MIDF and Malaysian
Reinsurance. PNB is a key institution of
this nation, formed in 1978, to fulfill the
aspiration of the New Economic Policy.
These 14 million Malaysians with their
savings entrusted to PNB have the right to
demand that those who are responsible for
managing PNB must have high integrity
and be trustworthy.
Jalil, apparently, did not attend LSE in
7 THEEDGE CEO MORNING BRIEF
H O M E
the UK. Instead. He did an external stu-
dent degree program with the University
of London, in association with LSE, at a
college in Kuala Lumpur.
There is, of course, nothing wrong that
he got his degree through an external pro-
gram. Indeed, many Malaysians take that
route because not everyone can afford to
study overseas, and they, like Jalil, should
be credited for their grit to pursue a uni-
versity degree.
The issue, however, is whether there
was a misrepresentation that he graduated
from the LSE? Perhaps it is just a matter
of interpretation, as LSE is one of 17 col-
leges under the umbrella of the University
of London. But those who studied and
graduated from LSE would argue there
is a fundamental difference.
Another issue is whether Jalil played
those global roles in Invesco Ltd and Ab-
erdeen Asset Management, as stated in his
resume? Were his past work experiences
“stretched”?
A key question is this: Would Jalil be
qualified to be appointed the CEO of PNB
based on the facts now known?
Whatever the outcome, it is sad that the
career of a young man will likely change
drastically after this. But it need not have
happened.
How come the “discrepancies” were
not noticed till now, especially for an in-
stitution like PNB? Were there lapses in
governance and due diligence? Who was
responsible and why?
We must address this if we do not want
this to happen again.
Last September Mahathir, responding
to a media question, said he was unaware
of the appointment of Jalil as CEO of PNB,
even though he was the chairman ofYayas-
an Pelaburan Bumiputra (YPB), which is
effectively the controlling entity of PNB.
When the chairperson of PNB, Tan Sri
Zeti Aziz, was asked about this, she said
Mahathir did not know the timing of the
announcement and he did not want to
preempt it. Possible, but not necessarily
reconcilable explanations.
Zeti denied that she decided on the ap-
pointment of Jalil without any consulta-
tion. She explained that PNB is regulated
by the Securities Commission and adopts
a strict, rigorous and robust governance
process. “We have a nomination and re-
muneration committee of the board. And
then (it was) presented to the board and
to YPB.”
That being the case, how did the lapses
in due diligence happen?
Were there other factors and forces at
work that led to the surprise departure of
then PNB CEO Datuk Abdul Rahman
Ahmad and the appointment of the young
and relatively unknown Jalil?
Recall that after GE14, a number of top
executives at GLCs were unceremonious-
ly removed for undisclosed reasons. PNB
chairman Tan Sri Abdul Wahid Omar,
Khazanah Nasional managing director
Tan Sri Azman Mokhtar, CIMB Hold-
ings chairman Datuk Seri Nazir Razak
were among them.
Was all this also the work of the same
hidden hands behind Jalil’s appointment as
PNB CEO that has now led to this messy
state of affairs?
 T U E S DAY J U N E 1 6 , 2 0 2 0
KUALA LUMPUR (June 15): Pos Malay-
sia Bhd posted a lower net loss of RM49.2
million for its first quarter ended March
31, 2020, down by more than half from
the RM141.13 million it achieved in the
corresponding three months a year ago.
The group, which had changed its fi-
nancial year-end to Dec 31 from March
31, provided the comparative figures in a
statement today. Quarterly revenue came
in at RM558.53 million, down 6.1% from
RM594.68 million previously.
During the loss-making quarter — its
seventh consecutive quarter in the red
— Pos Malaysia has noticeably reduced
its cost of sales and operating expense to
RM573.74 million, from RM650.12 mil-
lion in the previous immediate quarter end-
ed Dec 31, 2019 and RM676.23 million in
the three months ended March 31, 2019.
However its three core operations —
postal, logistics and aviation — remained
in the red at the pre-tax level.
It was previously reported that the
group is working on its costs by rational-
ising its post office network, divesting its
non-core businesses, and using a different
payment scheme — which is now under
trial run — for its delivery fleet.
Segment-wise, international and mail
UMW 1Q net
profit nearly
halves as
Covid-19 weighs
on automotive,
equipment
segments
BY ARJUNA CHANDRAN SHANKAR
theedgemarkets.com
KUALA LUMPUR (June 15): UMW
Holdings Bhd’s net profit for the first
quarter ended March 31, 2020 fell by al-
most half as the impact of the Covid-19
pandemic weighed on its automotive and
equipment segments.
In a bourse filing, UWM said the net
profit fell 48.76% to RM44.32 million,
from RM86.5 million in the correspond-
ing quarter last year. Earnings per share
dropped to 3.79 sen from 7.4 sen.
Quarterly revenue dropped 23.77% to
RM2.12 billion from RM2.8 billion pre-
viously.
8 THEEDGE CEO MORNING BRIEF
H O M E
Pos Malaysia
reports RM49.2m
losses in 1Q20 as
core segments
remain in the red
BY ADAM AZIZ
theedgemarkets.com
businesses dragged the postal segment.
Its logistics segment suffered losses in the
haulage business, while aircraft mainte-
nance and engineering services led to a
loss in its aviation segment.
The only profitable segment was its “oth-
ers” segment, which consists mainly of print-
ing and insertion, digital certificates, and Ar
Rahnu (Islamic pawn broking). “Profit be-
fore tax was mainly contributed by Ar Rah-
nu and digital certificates business,” it said.
In terms of revenue, postal revenue —
which now combines both postal segment
and courier segment — was stable and
contributed 69.99% of the group’s total,
UMW said its auto segment saw revenue
fall 26.7% to RM1.59 billion from RM2.16
billion on the back of slower vehicle sales.
This resulted in the profit before tax
(PBT) retreating to RM53.7 million from
RM124.2 million.
following an upward revision in postal rate
that was made effective in February. The
courier segment also saw parcel volume
rise by 6.7% on-year, it said.
Revenue in logistics and aviation seg-
ments were also stable, contributing
13.51% and 11.24% respectively.
The Covid-19 pandemic, said Pos Ma-
laysia, stalled its mail volume growth in
March. It also resulted in fewer retail trans-
actions in post offices, and lower cross-bor-
der transshipment tonnage.
On prospects, group chief executive of-
ficer Syed Md Najib said Pos Malaysia is
banking on e-commerce to be a growth
segment, moving forward.
It also expects the revised postage rates
to increase its annual revenue by RM100
million to RM150 million.
According to Pos Malaysia, its average
daily parcel volume recorded in April was
about 590,000, up 69% from March and
66% more than what it recorded in February.
“The group expects this trend to continue as
more consumers adapt online shopping as
the new norm,” it said, adding it aims to have
40 Pusat Pos Laju by year end, from 25 now.
Shares of the postage group fell 9 sen
or 8.65% to close at 95 sen today, valuing
it at RM743.64 million.
UMW’s equipment segment saw reve-
nue come in lower at RM289.15 million,
from RM382.84 million a year earlier, fol-
lowing sluggish demand for heavy equip-
ment and industrial equipment.
JUMP TO PAG E 1 0
T U E S DAY J U N E 1 6 , 2 0 2 0 9 THEEDGE CEO MORNING BRIEF
 T U E S DAY J U N E 1 6 , 2 0 2 0
KUALA LUMPUR (June 15): Chemical
Company of Malaysia Bhd (CCM) sees
rising demand for some chemical prod-
ucts amid the Covid-19 pandemic but the
group cautions that it continues to face
margin compression as prices of its core
contributor, caustic soda, remain weak.
CCM group managing director Nik
Fazila Nik Mohamed Shihabuddin said,
some 40% of the group’s business involves
caustic soda — a highly versatile substance
used in a variety of manufacturing process-
es — which prices have been impacted by
the global economic slowdown.
“Definitely the lower prices will squeeze
our margin further. Caustic soda is corre-
lated to commodity prices. Any slowdown
in the economy, which correlates to caus-
tic soda prices, will dampen our earnings.
But that is solely on the pricing side,” she
said in a virtual media briefing.
“However, we are expanding our capac-
ity for caustic soda production to cater to
the high demand in the country. In Malay-
sia, the demand for caustic soda products
is more than existing supply. In essence,
the demand outstrips supply. Our capacity
expansion will help offset the margin com-
pression to some extent,” she explained.
In November last year, CCM an-
nounced that it had awarded Sime Dar-
by Bhd a RM27.9 million contract to con-
struct a co-generation plant to power the
former’s Pasir Gudang Works 1 (PGW1)
in Pasir Gudang, Johor.
This will help expand the group’s
chlor-alkali production capacity by 50%.
It was reported that CCM will resume
supply of caustic soda to Petroliam Nasion-
al Bhd (Petronas) when the latter resumes
operations towards the end of 2020, fol-
lowing a disruption due to a fire at Petro-
FROM PAGE 8
The segment’s PBT fell to RM25.77
million from RM42.16 million.
In contrast, UMW’s manufacturing
and engineering segment posted a higher
revenue of RM248.53 million, compared
with RM237.1 million previously, due to
a higher volume of fan cases delivered by
the group’s aerospace business.
Segmental PBT was up to RM10.5 mil-
lion, from RM2.3 million a year ago follow-
ing higher aerospace revenue and greater
contribution from its lubricants business.
On its prospects, UMW is cautiously
optimistic about improving demand for its
vehicles post Movement Control Order.
The group said it will continue to
launch “a pipeline of exciting new models
to soften the impact of market slowdown”.
Furthermore, the 100% sales tax ex-
emption on completely knocked-down
10 THEEDGE CEO MORNING BRIEF
H O M E
CCM expects rising
demand for
other chemical
products to cushion
caustic soda
margin squeeze
BY MUHAMMED AHMAD HAMDAN
theedgemarkets.com
SHAHRIN YAHYA/THE EDGE
nas’ Refinery and Petrochemical Integrated
Development (Rapid) site in April 2019.
“Even with the expanded capacity at
our PGW1 plant, it will not be enough to
cater for Petronas’ Rapid. That’s how big
the demand for the product is in Malay-
sia,” said Nik Fazila.
For the full financial year ended Dec 31,
2019, CCM said the average selling pric-
vehicles and a 50% exemption on com-
pletely built-up vehicle sales tax will help
the group, it said.
As far as its equipment segment is con-
cerned, UMW said the heavy equipment
subsegment may face sluggish domestic
demand due to the delay in the imple-
mentation of projects following Covid-19.
However, the demand for its mining and
construction sectors abroad is encourag-
ing, and will help soften the blow from its
heavy equipment segment, the group said.
For the industrial equipment subseg-
ment, it will continue to focus on expand-
ing its equipment rental business while
extending recovery packages to custom-
ers, it added.
Despite the expected slowdown in new
vehicle sales, UMW said demand for auto
components in the aftersales and overseas
markets is expected to be sustainable, with
es of its products compressed up to 28%
compared with the corresponding period
in 2018, negating the impact of higher sales
volume for the year.
CCM’s net profit declined by 65% to
RM2.18 million for the first quarter ended
March 31, 2020 (1QFY20) from RM6.25
million a year earlier. Quarterly revenue
dropped slightly to RM96.6 million from
RM96.9 million.The decline, however, was
cushioned by a 14.9% increase in revenue
by the polymer division.
Nik Fazila said CCM’s polymer division
has benefitted from the Covid-19 pandem-
ic driven by the rising demand for person-
al protective equipment including gloves.
This, she said, is expected to last beyond
the easing of restrictions in Malaysia and
globally.
In 1QFY20, CCM’s polymer divi-
sion saw an increase of 15% in revenue
to RM27.4 million from RM23.8 million
compared with the similar period in 2019
due to a surge in demand from the glove
industry amidst heightened hygiene con-
cerns over the outbreak of the Covid-19
pandemic.
“For polymers, we supply locally and
regionally. Malaysia supplies about 70%
of rubber gloves globally, so basically our
business also has the same ratio. About
60-odd per cent of our supply goes to Ma-
laysian glove makers and the remainder
to other glove-making countries such as
Indonesia, Thailand and China,” she said.
Earlier, CCM said it was expanding the
capacity for Kleeners — a cleaning solu-
tion for ceramic formers supplied to glove
manufacturers. The group expects its fa-
cility in Bangi, Selangor to double output
from 9,000 to 18,000 tonnes per annum
when it is fully commissioned in 1QFY21.
the lubricants business to continue lever-
aging on original equipment manufacturer
partners, and strengthening sales in the
domestic and Asean markets.
While the aerospace subsegment is ex-
pected to face some adverse headwinds due
to Covid-19, UMW is partially sheltered
due to firm fan case orders received for
the rest of the year.
“The group will continue to focus on
strengthening its core business segments
and strategic cost optimisation initiatives
to improve its business performance and
operational productivity.
“Amidst the unprecedented challenging
business environment, the group will strive
to maintain its performance in 2020,” it said.
Shares in UMW finished 5.02% or 14
sen lower at RM2.65, valuing the group
at RM3.1 billion. The counter saw 3.54
million shares transacted.
T U E S DAY J U N E 1 6 , 2 0 2 0 11 THEEDGE CEO MORNING BRIEF

P U R S U I T S
 T U E S DAY J U N E 1 6 , 2 0 2 0 12 THEEDGE CEO MORNING BRIEF

H O M E

PwC Malaysia
KUALA LUMPUR (June 15): Pricewa-
terhouseCoopers (PwC) Malaysia has ap-

appoints Soo
pointed Soo Hoo Khoon Yean as the man-
aging partner of the firm with effect from

Hoo Khoon Yean

July 1, 2020.
This confirmed a report last Friday by

as managing
theedgemarkets.com.
In a statement today, PwC Malaysia said

partner, confirms
he succeeds Sridharan Nair, who has served
as managing partner for the past eight years.

theedgemarkets.
It said Soo is currently the assurance
leader for PwC Malaysia, a role he has
FLASHBACK: June 12, 2020

played since July 2016.
It said under his leadership, the assur-
ance practice has grown steadily and built
up a portfolio of service offerings other
than financial audits.
PwC added Soo has 27 years of experi-
ence in providing audit and business advisory
services to a wide range of public-listed com-
panies and financial institutions in Malaysia.
“Soo’s core expertise lies in the area
of assurance, IFRS implementation and
transaction services work,” it said.
A financial services industry specialist
by training, he has led several major pro-
jects for banking and insurance clients in
Malaysia and also in the region.
com report
BY YASMIN SYAZWINA
theedgemarkets.com
PwC Malaysia executive chairman Da-
tuk Mohammad Faiz Azmi said he is look-
ing forward to working with Soo to drive
the firm’s growth and enhance his presence
in the market as it adapts to an increasingly
dynamic business landscape.
Meanwhile, Nair said it has been a ful-
filling experience leading the firm from
2012, growing its multi-disciplinary prac-
tice, building regional networks and most
importantly, driving efforts to make PwC
a better place to work for its people.
“I now look forward to handing the reins
over to Soo and working with him to ensure
a smooth leadership transition,” he added.
PwC Malaysia said from July 2020,
Nair will be taking on a new role as vice
chairman of markets in PwC Asia Pacific,
a regional collaboration of PwC firms in
the Asia Pacific region, while continuing
to be based in Malaysia.

Mavcom, AGC
KUALA LUMPUR (June 15):The Malaysian ing fee was a complex process which includ-
Aviation Commission (Mavcom) and Attor- ed the conducting of a full validation of the

object to AirAsia’s
ney-General’s Chambers (AGC) are objecting competitive fares of 387 routes, as its operat-
to AirAsia Group Bhd’s leave application for ing structure is different from other airlines.

application for
a judicial review of the RM2 million penalty It said the removal of the fees involved the
imposed by the commission on the airline. restriction of AirAsia’s fares and routes struc-

judicial review of
During a mention of the case today, High ture, which, in certain countries, required
Court Justice Datuk Nordin Hassan fixed regulatory approval before adjustment.

RM2m penalty
July 27 as the next hearing date for the case. The airline also had to suspend certain
Present today were lawyers Kwan Will features on its website during the remov-
Sen and Arina Azmin, appearing on behalf al of the fees, due to the complexity of its
of Mavcom and AGC respectively, while back-end system.
lawyer Mohammed Mifzal Mohd Murshid BY AHMAD NAQIB IDRIS At 10.18am, AirAsia’s share price slid
Kieron represented AirAsia. theedgemarkets.com 1.5 sen or 1.55% to 95.5 sen, valuing the
In April, AirAsia sought a declaration group at RM3.24 billion. Meanwhile, 11.9
from the High Court that the penalty and million shares were traded.
decision issued by Mavcom on Dec 13,
2019, was invalid and of no effect.
It is also seeking further and consequen-
tial relief or directions to be made as the
court deems fit.
The airline claimed that there was a
breach of natural justice and that Mavcom
had acted in error of jurisdiction and in er-
ror of fact and law.
Mavcom found the airline to be in con-
travention of subparagraph 3(2) of the Ma-
laysian Aviation Consumer Protection Code
2016, alleging that it had failed to incorporate
the processing fee as part of its base fare as
made mandatory by the code, which resulted
in an increase of the final price to be paid by
a consumer before the purchase of a ticket.
Meanwhile, AirAsia said it did not contra-
vene the code and the removal of the process- Mavcom, AGC objecting to AirAsia leave application for judicial review of RM2m penalty.
 T U E S DAY J U N E 1 6 , 2 0 2 0
Malaysians
abroad advised
to take Covid-19
swab test three
days before
returning home
BY BERNAMA
PUTRAJAYA (June 15): Malaysians
abroad are advised to take the Covid-19
swab test three days before returning home,
said Senior Minister (Security Cluster) Da-
tuk Seri Ismail Sabri Yaakob.
He said it was due to the issue of a long
queue for those returning from overseas to
take the swab test at the airport.
“There is also a possibility for them to
be sent to a quarantine centre if they could
Covid-19: New
cases jump to 41,
with 32 involving
non-citizens
BY SYAFIQAH SALIM
theedgemarkets.com
KUALA LUMPUR (June 15): Malaysia’s
new Covid-19 cases jumped to 41 today
from eight reported yesterday, raising the
total infections in the country to 8,494.
Of the 41 new cases today, 38 were local
transmissions, with 32 of them involving
foreign workers while the six remaining
cases involved Malaysians.
Meanwhile, the three other cases were
imported, said Health director-general Da-
tuk Dr Noor Hisham Abdullah in a state-
ment today.
Providing the breakdown of cases in-
volving migrant workers, 15 of them were
linked to the Pedas cluster, 14 were detect-
ed among detainees at the Immigration
Academy of Malaysia, who were transferred
from the Bukit Jalil immigration depot
where a cluster had emerged, while three
involved people from cleaning companies.
As for the six cases involving Malay-
sians, the ones in Selangor involved an in-
dividual at a Kuala Selangor nursing home
with Acute Respiratory Infection and a
13 THEEDGE CEO MORNING BRIEF
H O M E
not get the result of their swab test on the
same day.
“So, as an alternative, Malaysian citi-
zens who want to come home and do not
wish to wait longer at the airport are ad-
vised to take the swab test three days be-
fore returning home,” he said at his daily
press conference here today.
He said those who have taken the test
overseas, however, need to get the certificate
verifying that their test results were nega-
tive, abide by the standard operating pro-
cedure (SOP), download the MySejahtera
app, wear the quarantine wristband, and
undergo self-quarantine for 14 days at home.
On media reports today about several
diplomats including US Ambassador to
Malaysia Kamala Shirin Lakhdhir, who
have been waiting to return to the country
since March following the enforcement
of the Movement Control Order (MCO),
Ismail Sabri said the government has not
prevented them from returning.
“The country’s borders are still closed
to foreigners, except for diplomats, as they
are working in the country. ‘Malaysia My
Covid-19: New vs cured cases
9000
8000
Total number of positive cases
Total number of recovered cases
7000
6000
MCO period
5000
4000
3000
2000
1000
0
March March April April
1 18 1 15
300 Daily infections
250 Daily recoveries
200
150
100
50 Daily recoveries
0
March March April April
1 18 1 15
close contact of patient No. 8,294, while in
Melaka the new case also involved a close
contact, this time with patient No. 7,817.
Meanwhile, two cases were detected dur-
ing a screening of tahfiz schools in Melaka
and Negeri Sembilan, while another case
was detected in Sabah, in which the patient
had close contact with the 119th fatality.
There are currently 973 active cases.The
number of active cases remained below the
900-mark for the second consecutive day,
Second Home’ (programme) participants
can also return.
“So the claim that foreign ambassadors
and diplomats are not allowed to return to
Malaysia is not true,” he added.
Ismail Sabri added that three days be-
fore returning to Malaysia, the foreign
ambassadors and diplomats must under-
go Covid-19 test swabs in their respective
countries and carry the necessary docu-
ments for verification.
“They can carry out self-quarantine at
home for 14 days and download the MyS-
ejahtera app so that their movements can
be monitored,” he added.
Asked about body temperature scanners
being used by premises with inaccurate read-
ings, he said employers or business owners
must purchase temperature scanners ap-
proved by the Medical Device Authority
under the Ministry of Health Malaysia.
“Business owners who have purchased
body temperature scanners need to take
the initiative to ensure the accuracy of their
respective temperature scanning devices,”
he said.
8,494
7,400
Total number of
recovered cases
April May June
29 13 15
54
41
April May June
29 13 15
as Malaysia had 986 active cases yesterday.
This left four patients in the intensive
care unit, said Noor Hisham.
Noor Hisham added that 54 patients have
recovered and were discharged today, bring-
ing the total cured cases to 7,400, account-
ing for 87.1% of the total number of cases.
No new deaths were recorded today,
maintaining the Covid-19 death toll in the
country at 121, translating into 1.42% of
overall cases.

kiplePay helps
merchants to
comply with SOPs
more easily
k
iplePay, an e-wallet payment
system under Green Packet
Bhd, has introduced an array
of features aimed at helping
merchants adhere to the strin-
gent standard operating procedures
(SOPs) during the conditional Move-
ment Control Order (cMCO).
kiplePay CEO Kay Tan says busi-
nesses faced a significant decline in
sales since the start of the MCO in
March. Although they are now allowed
to operate, they have to comply with
SOPs which are taking their focus
away from generating enough sales
to sustain their operations.
“A lot of these businesses had to
let go of staff to remain afloat. This
means they do not have enough hu-
man capital to adhere to the stringent
SOPs, which include having all the
staff and customers fill health dec-
laration forms and ensuring social
distancing in the premise,” says Tan.
By using kiplePay, business own-
ers are able to minimise the need for
their staff members to physically take
orders and handle payments. Dine-
in customers, for example, can order
and make payments via the QR codes
on the tables without having to in-
teract with any of the staff members.
Meanwhile, takeaway or self-collect
customers can order and make pay-
ments in advance, only coming to
pick up their orders when notified.
Aside from allowing staff mem-
By using the app,
the business owners
do not have to worry
about compliance
and can instead
focus on getting back
on their feet,
says Tan
T U E S DAY J U N E 1 6 , 2 0 2 0
bers to fill in health declaration forms
digitally, the kiplePay merchant app
also enables business owners to limit
the number of customers and enforce
social distancing among its customers.
“We want to help our merchants get
used to the new normal. By using the
app, the business owners do not have
to worry about compliance and can
instead focus on getting back on their
feet,” says Tan.
At the start of the MCO, retail stores
were not allowed to operate and most
food and beverages outlets depended
on deliveries to generate sales. Taking
advantage of the situation, there was a
noticeable spike in the number of social
media sellers over the past few months,
says Tan. Although these sellers have
been able to gain a sizeable exposure
by promoting their businesses on chan-
nels such as Facebook, Instagram and
Whatapps, they are struggling with in-
ventory and payment systems, he says.
“The process is not as seamless as
it could be. After the customers decide
on an order, the sellers will usually ask
them to transfer their payments to a
bank account. The order will only be
processed after the customers send
their proof of purchase, which may
take some time,” says Tan.
To address this problem, kiple-
Pay has developed 1-Click Payment,
a feature which allows merchants to
create a web portal with all the
information pertaining their
stock-keeping units (SKUs).
When customers contact
them to buy a specific prod-
14 THEEDGE CEO MORNING BRIEF
uct, the merchants can go to the portal,
retrieve the link to the SKU’s payment
page and send it to the customer.
Through this link, the customer is
able to choose any payment alterna-
tive to complete the purchase, either
by using online banking or credit and
debit cards. Merchants will be notified
when the payment is accepted. They
can then start to prepare the orders for
delivery or self-pickup by the customers.
“We are also working on integrating
the portal with delivery partners so that
it becomes even easier for merchants to
handle the orders. When this is complet-
ed, merchants can focus on interacting
with their customers and promoting
their businesses on their preferred social
media channels while we help with the
rest. Our goal is to help small business
owners boost their sales and increase
operational efficiency,” says Tan.
The 1-Click Payment feature provides
more confidence to buyers and sellers
as the transactions are traceable and
real-time, says Tan. “Another trend we
see online is merchants selling their
goods through Facebook Live, letting
their audience bid for the best price.
Usually, the buyers who win the bid
will be asked to transfer the money
to the seller.
“In Malaysia, many of these sellers
are seafood vendors. When the bids
are done, they will start cutting up the
produce to be delivered to the buyers.
If the money is never banked in, the
sellers will end up with wastage. By
signing up with us, they eliminate this
problem completely,” says Tan.
At the moment, the kiplePay team
is working on a feature to handle in-
ventory as well. “For example, let’s
say the merchant is selling 100 pieces
of ‘baju raya’. The inventory on the
portal will reflect the completed pur-
chases. When the inventory hits zero,
payments will no longer be accepted.
This will definitely help merchants
who are selling large quantities of
products,” he adds.
kiplePay is an e-money issuer
licensed by Bank Negara Malaysia.
Starting in 2018, kiplePay focused on
offering its services to public univer-
sities with cashless ambitions. The
platform works with the universities
to enable payments, financing distri-
bution (for scholarships and zakat)
as well as facilities booking through
a co-branded app. For example,
students who wish to book a tennis
field can do so and pay the booking
fee through the app, eliminating
the need for them to manually visit
the facilities before their intended
time of use.
The platform has onboarded four
universities so far - Universiti Utara
Malaysia, Universiti Teknikal Malaysia
Melaka, Universiti Putra Malaysia and
the Universiti Teknologi MARA chain,
starting from the Shah Alam campus.
Beyond the universities, kiplePay
offers whitelabel wallet-as-a-service
(WaaS) solution to any large commu-
nity wanting to organise a payment
facility fully customisable to its needs.
Tan says that the community can ei-
ther build their own apps or co-brand
with kiplePay to introduce this facility.
The features that the communities
are able to enjoy through the WaaS
service include enabling electronic
know-your-customer management,
online and in-store payments, QR
payments, money transfer, voucher
generation and redemption as well
as loyalty and card management.
The aim is to create more cashless
communities in Malaysia, says Tan.
 T U E S DAY J U N E 1 6 , 2 0 2 0
KUALA LUMPUR (June 15): The High
Court has rejected Datuk Seri Najib
Razak’s bid to postpone the 1Malaysia De-
velopment Bhd (1MDB) audit tampering
trial pending the disposal of his application
to remove Datuk Seri Gopal Sri Ram as
the lead prosecutor.
Najib’s lawyer Tan Sri Shafee Abdullah
had earlier told the court of the defence’s
application to recuse Sri Ram in the case.
Shafee argued that the matter should be
resolved first because if the court were to
proceed with the trial, it would be as if the
application is non-existent or trivialised.
“Any prosecutor that is involved in that
sort of transaction cannot be impartial and
therefore ought to be recused,” he said,
referring to a “revelation” by former At-
torney-General Tan Sri Mohamed Apandi
Ali last week via a Facebook posting, and
subsequently an affidavit, that Sri Ram
was sent to see him in January 2018 by
Tun Dr Mahathir Mohamad, to persuade
him to arrest then prime minister Najib.
Justice Mohamed Zaini, however, said
the trial should continue, as the recuse
application should be dealt with separate-
ly. The prosecution has been given three
weeks to respond to the application, and
the court will hear the result of the appli-
cation on Aug 7.
“We have had nine days of trial so far,
and as Datuk Seri Gopal Sri Ram has
rightly pointed out, trials are quite dif-
ficult to come by. I don’t mean to hurry
unnecessarily, but having done nine days
of trial, in the event that I allow the appli-
cation, we would have wasted nine days
of trial anyway.
“So, taking into consideration that we
are taking today off, and a good part of
tomorrow morning, I’m inclined to pro-
ceed with the trial first,” Justice Mohamed
Zaini said.
KUALA LUMPUR (June 15): The 1Ma-
laysia Development Bhd (1MDB) final au-
dit report tampering trial of former prime
minister Datuk Seri Najib Razak and for-
mer 1MDB president Arul Kanda Kan-
dasamy has been postponed to tomorrow,
as one member of Najib’s defence team
came down with a high fever and is un-
dertaking Covid-19 testing.
Lead defence counsel Tan Sri Muham-
mad Shafee Abdullah said he would also
take the test today — making it the sixth
time he would take the test — as a precau-
tionary measure, which resulted in High
Court Justice Mohamed Zaini Mazlan ad-
journing today’s proceedings.
Shafee’s team member, Rahmat Hazlan,
was said to have a high fever and coughs,
and was not able to turn up to court to-
15 THEEDGE CEO MORNING BRIEF
H O M E
Court rejects
Further dates previously fixed for the
trial are July 1 to 3, and July 27 to 30.
Najib’s attempt
Sri Ram, a former federal court judge,
has declined to comment on Apandi’s
to delay trial
claim.
In his Facebook posting, Apandi
pending disposal
claimed that Sri Ram visited his home
in January 2018 to persuade the former
of bid to recuse
to arrest Najib at his office. Apandi said
Sri Ram told him that he was sent by Dr
Sri Ram
Mahathir.
This is the third time Najib has tried
to remove Sri Ram as the prosecutor in
the case.
BY EMIR ZAINUL & AHMAD NAQIB IDRIS Previously, he made an application be-
theedgemarkets.com fore 1MDB-Tanore trial judge Justice Col-
lin Lawrence Sequerah, who dismissed it.
The decision was upheld by the Court of
Appeal and Federal Court.
Najib and Shafee, who is facing a
RM9.5 million money laundering charge,
had also filed separate judicial review ap-
plications to challenge Sri Ram’s appoint-
ment as prosecutor.
This was initially dismissed by the High
Court and the decision was upheld by the
Court of Appeal.
However, the Federal Court treated the
judicial review application as separate from
the one heard before Justice Sequerah and
ordered that the case be heard on its full
merits by the High Court where the ap-
plication had been filed.
In the 1MDB audit tampering trial,
Najib is charged with abuse of power as
a public officer in his capacity as prime
minister and finance minister in altering
the 1MDB audit report which was to be
tabled to the Public Accounts Committee
in 2018. This is so that no action could be
taken against him by Parliament.
Court says no to Najib’s bid to delay 1MDB audit Former 1MDB president and chief ex-
tampering trial pending disposal of application to ecutive officer Arul Kanda Kandasamy is
recuse Sri Ram.
charged with abetting Najib.
1MDB audit
due to possible Covid-19 exposure fears.
In March, Shafee requested to adjourn
tampering trial
the 1MDB-Tanore trial as he was in prox-
imity to a person who was being tested
postponed after
for Covid-19.
At the time, the whole 1MDB defence
Covid-19 scare
team was instructed to self-quarantine as
there was a risk that the virus could spread
among them.
In the 1MDB audit tampering trial,
BY EMIR ZAINUL & AHMAD NAQIB IDRIS Najib is charged with abuse of power as
theedgemarkets.com a public officer in his capacity as prime
minister and finance minister in altering
the 1MDB audit report which was to be
day. Shafee said Rahmat had gone for the tabled to the Public Accounts Committee
Covid-19 test, with the results to be out in 2018. This was so that no action could
by tomorrow morning. be taken against him by Parliament.
This is the second time Shafee has re- Meanwhile, Arul Kanda is charged with
quested for postponement of Najib’s trial abetting Najib.
 T U E S DAY J U N E 1 6 , 2 0 2 0
After a two-month break, the trial of former Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, who is facing
47 charges involving millions of ringgit of Yayasan Akalbudi funds, has resumed on June 15.
10 bank officers say over RM24m went
into account of law firm linked to Zahid
KUALA LUMPUR (June 15) : Ten bank
officers from various commercial banks in
the Klang Valley and Kedah told the High
Court here today that over RM24 million
had been deposited into the account of
law firm Messrs Lewis & Co, which was
said to be linked to former deputy prime
minister Datuk Seri Ahmad Zahid Hamidi.
The transactions took place between
March 2016 and March 2018. The de-
posits amounted to RM24,388,722.96.
It was not established today, however, as
to how much of that sum went into the Ba-
gan Datuk member of Parliament’s accounts.
Messrs Lewis & Co was cited in several of
the charge sheets filed against Ahmad Zahid.
The bank officers who testified today
were: Mar Sai Chin from Public Bank;
Lina Zailan, Au Lai Bin, Mohd Zulkfar-
nain Ab Latiff, Suzaliza Kamari, Sharifah
Shifah Syed Zainol and Yusri Md Kasri –
all from Maybank; CIMB’s Lau Ai Mai,
RHB Bank’s branch manager G Jayachan-
tran and Hong Leong Bank’s Wong Shiau
Phing who were the 44th to 53rd prose-
cution witnesses in the trial.
The transactions went through individ-
ual and company accounts – including My
EG Sdn Bhd’s. The deposits were made
in the form of cheques, bankers’ cheques
and demand drafts.
All the witnesses were quizzed by Dep-
16 THEEDGE CEO MORNING BRIEF
H O M E
BY HAFIZ YATIM
theedgemarkets.com
uty Public Prosecutor Mohd Harris Ong
Mohd Jeffery Ong. The prosecution team
was led by Datuk Raja Rozela Raja Toran.
The witnesses were then cross-exam-
ined by lawyer Mohd Haziq Dhiyaud-
din Razali; the defence team was led by
Hisyam Teh Poh Teik.
The court was told that the largest
amount deposited — a total of RM10
million — were by Chia Bee Enterprise
Ltd. Besides Chia Bee Enterprise and My
EG, the court heard that other companies
involved in making the deposits included:
Cergas Murni Sdn Bhd, HRA Teguh Sdn
Bhd, Kiosk Solutions Sdn Bhd and MTM
Networks Sdn Bhd.
All 10 witnesses said the deposits were
for payments of legal fees. According to
one witness, some were for accounting fees.
Hong Leong’s Wong, when questioned
during re-examination by Harris Ong, said she
was not sure what led to those transactions.
It is understood that other prosecution
witnesses to be called later will testify that
the funds were subsequently deposited into
the law-firm’s fixed deposit accounts.
Ahmad Zahid, who is also Umno’s
president, is facing 47 charges — 12 for
criminal breach of trust (CBT), eight for
MOHD SUHAIMI MOHAMED YUSUF/THEEDGEMARKETS
corruption and 27 for money laundering
— involving tens of millions of ringgit of
funds belonging to Yayasan Akalbudi, a
charitable foundation he set-up.
On the CBT charges, the 67-year-old
former home minister was alleged to have
used the funds to, among others, make six
payments to his personal credit cards, and
to pay his insurance policy. The charges
were made under Section 409 of the Pe-
nal Code, which provides a jail term of
between two and 20 years, with whipping
and fine, upon conviction.
Ahmad Zahid also claimed trial to eight
counts of graft, whereby he was accused
of accepting bribes from three companies,
namely Mastoro Kenny IT Consultant &
Services, Data Sonic Group Bhd and Pro-
found Radiance Sdn Bhd, during his ten-
ure as home minister, to help the com-
panies obtain projects like the supply of
passport chips, and to be appointed as
operator of one-stop visa centres for mi-
grant workers from Pakistan and Nepal.
If convicted, he could face a maximum
jail term of up to 20 years and a fine five
times the bribe amount for each charge.
As for the money laundering charges,
he could be jailed up to 15 years for each
conviction — together with a fine of up
to five times the amount involved or RM5
million, whichever is higher.
 T U E S DAY J U N E 1 6 , 2 0 2 0 17
17 THEEDGE CEO MORNING BRIEF
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 T U E S DAY J U N E 1 6 , 2 0 2 0 18 THEEDGE CEO MORNING BRIEF

W O R L D

Beijing outbreak grows as panic spreads

through Chinese capital
REUTERS

BY BLOOMBERG

C
hina is racing to control a new
outbreak in Beijing that reached
nearly 100 infections over the
weekend as it faces the biggest
test of its coronavirus containment strat-
egy yet.
Officials are fanning out over housing
compounds, knocking on doors to ques-
tion residents on whether they’ve had
contact with the city’s largest fruit and
vegetable market, Xinfadi, where the new
outbreak is believed to have originated.
In the Xicheng district where the mar-
ket is located, people lined up late at night
over the weekend at a sports stadium that’s
been re-purposed into a testing center.
Elementary schools for first to third
grade students delayed the resumption of
classes and high-schoolers were encour-
aged to study from home. Many compa-
nies told employees to work from home,
housing compounds ramped up security
checks and swimming pools were shut-
tered.
“The risk of virus spread is very high, A man wearing a face mask walks with a bicycle past a one-day closure sign at the entrance of a
and resolute and decisive measures are convenience store that sells produce from the Xinfadi wholesale market, following new cases of
coronavirus disease (Covid-19) infections in Beijing, China on June 15, 2020.
needed to prevent further spread,” vice
premier Sun Chunlan said during a state
council meeting on Sunday, reported state contaminated seafood or meat that was
media. imported into China, said Yang Peng, a
The abrupt resurgence of cases in the While China’s contained researcher with the Beijing Center for Dis-
capital of 20 million people threatens to outbreaks in its central and eases Prevention and Control in an inter-
disrupt the hard-won normalization of northeastern regions through view on state television CCTV, on Sunday.
everyday life and business after China oppressive lockdowns, it’s The market, which supplies 80% of
quelled its first epidemic months ago. The never had a significant flare- Beijing’s farm produce, was closed on
outbreak in Beijing, China’s cultural and Saturday for disinfection while more
political center where its business elites
up in a major city until now. than 10,000 merchants and employees
and political leadership reside, is set to be will undergo testing. Several neighbor-
a reckoning for the Asian giant’s strategy hoods in Beijing, including the financial
of aggressive virus control. 430,000 people worldwide, is nowhere district that’s home to the headquarters of
While China’s contained outbreaks close to burning out. Infections in Japan’s China’s biggest banks and financial firms,
in its central and northeastern regions capital of Tokyo are also on the rise, while have seen their risk levels raised to medi-
through oppressive lockdowns, it’s never American states like Florida are reporting um from low. Around eleven residential
had a significant flare-up in a major city record case growth. sub-districts near the market have been
until now. There are already signs of hes- All 79 confirmed cases detected so far locked down.
itation to impose the costly and disrup- in Beijing have been merchants or visitors The deputy head of the district that’s
tive measures China has used elsewhere: to the Xinfadi market and their family home to the wholesale market and the
while transport links were cut off quick- members. Zhang Yuxi, the market’s chair- general manager of the market have been
ly in northeastern provinces when a new man, said on Friday that the virus has dismissed.
cluster emerged last month, Beijing’s do- been traced to a chopping board used by “I can sense the panic although I live
mestic flights and train services were still a seller of imported salmon at the market, quite far away from the market,” said Bei-
running without interruption as of Mon- but officials remain stumped over the new jing resident Cathy Liu, 26, an intellectual
day morning. cluster’s origins. property analyst. “The unknown origin
The new outbreak is re-igniting fears Genome sequencing of the virus points makes it even more terrifying. We can’t
that the pandemic, which has sickened to its source being Europe and the new rule out the possibility of a huge outbreak
over 7.8 million people and killed over outbreak could have originated from in Beijing.”
 T U E S DAY J U N E 1 6 , 2 0 2 0
Saudi Aramco
cuts July crude
supplies to at
least five buyers
in Asia — sources
BY SHU ZHANG & FLORENCE TAN
Reuters
SINGAPORE (June 15): The world’s
largest oil exporter Saudi Aramco has re-
duced the volume of July-loading crude
that it will supply to at least five buyers
in Asia, seven sources said today.
The cuts were mainly for medium and
heavy grades and were seen at refineries
in countries such as China, the sources
with knowledge of the matter said.
Four of the refiners saw smaller July
cuts than what they received in June.
The sources declined to be named due
to sensitivity of the matter.
The move followed a deal struck by the
Organization of the Petroleum Exporting
Countries and its allies including Russia
SEOUL (June 15): South Korea will face
another wave of Covid-19 infections, with
as many as 800 new cases a day by July, if
the government does not introduce stricter
social-distancing guidelines, a prominent
infectious disease specialist has warned.
The warning comes after the health au-
thorities last Friday extended prevention
and sanitation guidelines to protect against
Covid-19 until daily new infections drop
to single digits.
Ki Moran, a professor of cancer control
and population health at the National Can-
cer Center, used mathematical modelling
based on a snapshot of June 11 — when
each infected person was estimated to have
spread the virus to 1.79 people on average,
a “reproduction factor R” of 1.79 — to
project the situation in late June and July.
If the infection rate remains at this lev-
el, South Korea will report 254 new cases
daily by June 25 and 826 by July 9, accord-
ing to Ki’s model.
The research, funded by the South Ko-
rean government, estimated that in the best
scenario, with the current R value decreas-
ing by half, there would be 23 new cases
daily by June 25 and four by July 9.
“P, which stand for ‘probability of in-
fection’, is lowered by wearing masks and
washing hands, but the C — number of
contacts made, [one of the] two key fac-
19 THEEDGE CEO MORNING BRIEF
W O R L D
to keep production cuts of 9.7 million
barrels per day, or 10% of pre-Covid-19
world demand, until the end of July.
Saudi Arabia said it will end its deep-
er, voluntary cuts amid signs of recov-
ering global demand.
Saudi Aramco declined to comment.
Tighter Middle East supplies and im-
proving refinery appetite for crude have
prompted Saudi Aramco to hike July of-
ficial selling prices (OSPs) to Asia more
than expected even though refining mar-
gins and oil demand have yet to catch
up with the rising crude valuation, the
sources said.
“Increased OSPs have caught us by
South Korea
may face a new
Covid-19 wave
without tough
social-distancing
measures
BY SANGMI CHA
Reuters
BLOOMBERG
South Korea may face a new Covid-19 wave
without tough social-distancing measures — expert.
REUTERS
surprise and these are not attractive to
refiners specially in a market where re-
fining margins are weak,” said BPCL’s
head of refineries R Ramachandran.
This has led at least one major Asian
buyer to request for almost a third less
of its contract volume for July, one of
the sources with direct knowledge of the
matter said.
Two other sources said they will in-
crease the purchase of cross-region ar-
bitrage cargoes this month, such as West
African crude and US crude, that are
priced more competitively and reduce
the purchase of expensive Middle East-
ern oil.
tors that determine the R — can only be
reduced by intensive social distancing,”
Ki said.
New infections have persisted in the
mid-double digits after several new clusters
in the area around Seoul. There were 37
new cases on Sunday, taking the national
tally to 12,121, with 277 deaths.
“We continue to carry out preven-
tion measures in the Seoul area and even
though the daily infections hover around
the range of 50 every day, we actively con-
duct contact-tracing monitor to bring the
numbers under control,” deputy director
Kwon Jun-wook of the Korea Centers
for Disease Control and Prevention told
a briefing.
Other experts questioned whether
South Koreans have the patience to ac-
cept the return to tough social distancing.
It would have been easier to reinstate
social distancing if the guidelines had been
more stringent from the beginning, said
Jekarl Dong-wook, an assistant professor of
laboratory medicine at the Catholic Uni-
versity of Korea.
South Korea has been widely praised
for how it has handled the pandemic. The
government is wary of losing that hard-won
recognition, said Seol Dai-wu, an expert
in vaccine development and a professor at
Chung-Ang University.
 T U E S DAY J U N E 1 6 , 2 0 2 0
SINGAPORE (June 15): Stock market
gains have further to run and investors are
still under-pricing the scale of the world’s
coronavirus recovery, investment bank
Morgan Stanley said in an outlook note.
Gains have further to run and inves-
tors are still under-pricing the scale of the
world’s coronavirus recovery, investment
bank Morgan Stanley said in an outlook
note.
“While the last four months have been
exceptional, we think that this cycle has
been, and will be, more ‘normal’ than ap-
preciated,” said Andrew Sheets, the bank’s
chief cross-asset strategist.
“We think that stocks and credit will be
modestly higher and tighter over the next
Holidaymakers
and cigarette
runs: Europe
starts reopening
its borders
BY PHILIP BLENKINSOP
Reuters
BRUSSELS (June 15): European nations
eased border controls on Monday as the
number of coronavirus cases declined af-
ter three months of lockdown, but Spain’s
continued closure, a patchwork of quar-
antine rules and remote-working mean
pre-crisis travel levels are a way off.
Greek airports allowed more interna-
tional flights as the country sought to sal-
vage its summer, German tourists flock-
ing to neighbouring Denmark caused an
8 km (5 miles) queue and Italians popped
into France to buy lottery scratch cards.
In the Belgian village of Macquenoise,
tabac stores did brisk trade as French cit-
izens streamed across the border to buy
cheaper tobacco after suffering higher
prices at home since mid-March.
“It’s worth the effort,” said Nadege
Caplain, making an early-morning 200-
km (125 miles) round trip to buy ciga-
rettes for her and her family.
The Schengen area of 22 EU countries
plus Iceland, Liechtenstein, Norway and
Switzerland operates control-free cross-
ings. But for the past three months they
have been mostly closed to all but goods
traffic and cross-border commuters.
European officials hope the lifting of
internal border controls will allow a grad-
ual reopening to other countries from July
20 THEEDGE CEO MORNING BRIEF
W O R L D
Recovery rally
has further to
run, so buy stocks:
Morgan Stanley
BY TOM WESTBROOK
Reuters
12 months,” he said. The bank forecasts
the S&P 500 index at 3,350 points and
benchmark U.S. 10-year yields at 1.3%
by mid-2021.
European officials hope the lifting of internal border controls will allow a gradual reopening to other
countries from July and resuscitate a tourism industry that flatlined during the lockdown.
and resuscitate a tourism industry that
flatlined during the lockdown.
Tourism and recreation make up al-
most 10% the EU economy and even
more in the Mediterranean countries,
some of which were hit hardest by the
pandemic.
In Greece, passengers arriving from
airports deemed high-risk by the EU’s
aviation safety agency will be tested for
the coronavirus and quarantined up to
14 days, depending on the result. Restric-
tions remain for passengers from Britain
and Turkey. Arrivals from other airports
will be randomly tested.
Spain closed
It will, however, not be a return to unfet-
tered travel for the Schengen area’s 420
million inhabitants.
Spain will allow no foreign tourists
until June 21, with exceptions for some
Spanish islands.
Elsewhere, the right to travel will de-
The call, made in a note dated Sun-
day and distributed on Monday, comes
as global markets pull back from a sharp
rally that has lifted world stocks about
36% from March lows.
The S&P 500 .SPX closed at 3,041.31
points on Friday and U.S. 10-year yields
US10YT=RR last sat at 0.6625%.
Morgan Stanley analysts suggest clients
take long positions in U.S. small caps and
financials, the euro and emerging market
currencies, such as the Indonesian rupiah
and Indian rupee, and add a little bit more
risk to their credit portfolios.
“We recommend a broad rotation
into cyclicals and value across global
equities.”
REUTERS
pend n where you live and where you are
going. The Czech Republic has a traf-
fic-light system, barring entry for tourists
from ‘orange’ or ‘red’ countries such as
Portugal and Sweden.
Denmark will allow in tourists from
Iceland, Germany and Norway, but nota-
bly not Sweden, on condition they book
at least six nights’ accommodation.
Britain’s two-week quarantine for vis-
itors means Britons will face the same
confinement in France.
Before the crisis, an average of 3.5
million people crossed an internal EU
border every day, according to a 2019
European Parliament report, some 1.7
million of them commuters.
Many of the latter are now working
from home, while continued restrictions
and health concerns are expected to curb
tourism and business travel.
At Brussels Airport, day one of the
reopening will see around 60 flights op-
erating, 10% of normal.
 T U E S DAY J U N E 1 6 , 2 0 2 0
Hong Kong’s rich are preparing
for a worst-case scenario
BY ALFRED LIU, LULU YILUN CHEN
& VINICY CHAN
Bloomberg
HONG KONG (June 15): One Hong Kong
businessman moved US$10 million to Sin-
gapore and plans to transfer more. Anoth-
er is eyeing London property, worried that
prices in Hong Kong are too high. Well-to-
do families across the city are opening off-
shore bank accounts and applying for alter-
native passports.
While it doesn’t add up to an exodus
just yet, Hong Kong’s rich are increasingly
hedging their bets as the financial hub suf-
fers its worst economic and political crises
since at least 1997.
Many high-net-worth investors are either
reducing their Hong Kong exposure or tak-
ing steps to ensure they can withdraw as-
sets at a moment’s notice, underscoring the
challenge for Chief Executive Carrie Lam
as she tries to maintain the city’s status as
magnet for Asian wealth. Rich individuals
are major players in Hong Kong’s equity and
real-estate markets as well as big buyers of
Chinese corporate bonds issued in the city.
Private bankers say their clients accel-
erated contingency planning efforts after
China announced last month it would im-
pose controversial national security laws on
Hong Kong. The legislation threatens to
erode the former British colony’s judicial
independence, provoke sanctions from the
US and revive street protests that battered
the tourism and retail industries even before
the coronavirus outbreak plunged the econ-
omy into its deepest recession on record.
“What we’re basically seeing is a bit like
a slow-moving train wreck,” said Richard
Harris, chief executive of Port Shelter In-
vestment Management in Hong Kong.
“People who haven’t moved their money
out may be tempted to think: ‘Well, maybe
I should be moving my money out.’ That
process is likely to continue.”
To be sure, there’s little evidence so far of
widespread capital flight. Hong Kong bank
deposits increased to a record in April and
the city’s currency has continued to trade at
the strong end of its permitted band against
the dollar, a sign of persistent inflows.
Lam’s government has said the security
laws will help make Hong Kong a “safe, sta-
ble and welcoming city” and won’t affect the
“legitimate rights and freedoms enjoyed by
Hong Kong residents and international inves-
tors under the law and independent judicial
21 THEEDGE CEO MORNING BRIEF
W O R L D
power.” Hong Kong’s wealthiest billionaires
have publicly endorsed the legislation and
expressed confidence in the city’s future.
In private, however, many Hong Kong
entrepreneurs and high-earning profession-
als are sounding a more pessimistic note.
Cheng, the businessman who moved
US$10 million to Singapore, also secured
his permanent resident status in the city-
state this year and has been selling his Hong
Kong properties. He has no concrete plans
to emigrate yet, but is considering his op-
tions. He and his family have passports from
the US, Canada, Australia and France.
Cheng, who was born in Hong Kong, said
he worries about China’s tightening grip on
the city and the prospect for more unrest.
Like several of the people quoted in this story,
he asked not to reveal his full name because
of the political sensitivity of the subject.
Sam, a senior investment banker in Hong
Kong, has decided to leave the city. The
43-year-old is emigrating to Australia with
his wife and two young boys in about three
months, the second time he will have left
Hong Kong during a period of political tur-
moil. Sam grew up in the city, but moved to
Brisbane when he was 12 after his parents got
spooked by China’s crackdown on protesters
in Beijing’s Tiananmen Square in 1989. He
came back to Hong Kong 20 years ago for
his career but now sees no upside to staying.
“Things are looking bad and deterio-
rating,” he said. “We may as well pack our
bags and move to Australia so that the kids
can have a better environment growing up.”
Margaret Chau, a Hong Kong-based im-
migration program director for Goldmax
Immigration Consulting Co, said inquiries
at her firm have jumped about five-fold af-
ter news of the national security legislation.
REUTERS
For now, most of her wealthy customers are
more interested setting up an escape route
than leaving right away.
“They see this as a backup plan,” Chau
said.
Kerry Goh, chief executive officer of
multi-family office Kamet Capital in Sin-
gapore, said his clients have shifted from
asking generic questions about moving out
of Hong Kong to making detailed inquiries
about everything from schools to visas and
bank accounts.
“What’s happened in Hong Kong has re-
ally sped up the timing of 2047,” Goh said,
referring to the expiration date of China’s
50-year pledge to preserve Hong Kong’s
autonomy after the handover from Britain.
“As Hong Kong’s troubles shoot up, the
benefits of Singapore have become more
self-explanatory.”
Other more far-flung locales are also at-
tracting increased interest from investors in
Hong Kong. Puerto Rico’s Standard In-
ternational Bank, a so-called International
Financial Entity that expanded its footprint
in Asia last year, has seen its deposits more
than triple since December 2019, accord-
ing to general manager Maria Diaz. “Tur-
bulence in Hong Kong has changed the
landscape,” she said.
Dennis, a 34-year-old executive at a Hong
Kong-based consulting firm founded by his
parents, said his family and many of their
friends have started moving cash out of the
city. He’s looking to buy more properties in
the UK, where he spent almost a decade
attending boarding school and university.
“I could buy a much bigger flat in Lon-
don, so why not?” he said. “I’m just trying
to protect my money against any uncer-
tainty.”
 T U E S DAY J U N E 1 6 , 2 0 2 0
Malaysian-born lawyer involved
in taking down Carlos Ghosn at Nissan
BY REED STEVENSON
Bloomberg
C
arlos Ghosn always said he was
set up.
Now there’s some evidence to
support his claim. According to
people familiar with what happened and
previously unreported internal correspond-
ence, the campaign by top Nissan Motor Co.
executives to dethrone one of the most cel-
ebrated leaders in the automotive industry
started almost a year before Ghosn’s arrest
in late 2018 for alleged financial misconduct.
The effort was motivated in part by op-
position to the former chairman’s push for
greater integration between the Japanese
carmaker and long-time alliance partner
Renault SA, the new information reveals.
While Nissan has long maintained that
the decision to oust Ghosn turned on al-
legations of under-reporting his income
and other financial transgressions leveled
by Tokyo prosecutors, the documents and
recollections of people familiar with what
transpired show that a powerful group of in-
siders viewed his detention and prosecution
as an opportunity to revamp the global au-
tomaker’s relationship with top shareholder
Renault on terms more favorable to Nissan.
A chain of email correspondence dating
back to February 2018, corroborated by peo-
ple who asked not to be identified discussing
sensitive information, paints a picture of a
methodical campaign to remove a powerful
executive.The information comes to light as
another former Nissan executive and the com-
pany itself face a looming trial inTokyo, and as
Japan seeks the extradition of Ghosn, 66, who
fled to Lebanon in a daring escape last year.
Alarmed by Ghosn’s pledge in early 2018
to make the alliance between the companies
irreversible, senior managers at the Japanese
automaker discussed their concern at how
the chairman of both Nissan and Renault
was taking steps toward further convergence,
according to people familiar with discussions
at the time.
‘Neutralize’ His Initiatives
At the center of those discussions was Hari
Nada, who ran Nissan’s chief executive’s of-
fice and later struck a cooperation agreement
with prosecutors to testify against Ghosn.
Nissan should act to “neutralize his initia-
tives before it’s too late,” Nada wrote in mid-
2018 to Hitoshi Kawaguchi, a senior man-
ager at Nissan responsible for government
relations, according to the correspondence.
22 THEEDGE CEO MORNING BRIEF
W O R L D
Nissan email trail casts new light on takedown of Carlos Ghosn.
Ghosn has said he’s innocent of the four
charges of financial misconduct and breach
of trust. Considered an international fugitive
by Japan, Ghosn declined to comment via
a representative for this story.
LavanyaWadgaonkar, a spokeswoman for
Nissan, also declined to comment for this
story. Nada didn’t respond to an email and
voicemail seeking comment, while Kawagu-
chi, who left Nissan in December, declined
to comment, as did the Tokyo prosecutor’s
office and a representative for Renault.
Day Before
On Nov. 18, 2018, the day before Ghosn
was seized on a private jet at Tokyo’s Haneda
Airport, Nada circulated a memo to then-
Chief Executive Officer Hiroto Saikawa,
according to people familiar with the doc-
ument. Nada called for termination of the
agreement governing the alliance and the
restoration of the Japanese company’s right
to buy shares in Renault, or even take it over.
Nissan also would seek to abolish the French
automaker’s right to nominate Nissan’s chief
operating officer or other more senior posi-
tions, people familiar with the memo said.
Ghosn’s removal would be a fundamental
change to the world’s biggest car alliance,
requiring new governance, Nada is said to
have written in the document to Saikawa.
Nada said Nissan should be quick to press
its position after Ghosn’s arrest. Renault was
kept in the dark about the criminal investiga-
tion, Bloomberg reported in January 2019.
The discord between the Japanese and
French partners ultimately thwarted Re-
nault’s 2019 bid for greater scale by com-
bining with Fiat Chrysler Automobiles NV,
and stymied cooperation over strategy and
new models. Nissan’s management was in
turmoil and profitability was shrinking, hurt
by an aging lineup and high costs.
BLOOMBERG
In May, Nissan reported a loss of 671 bil-
lion yen ($6.3 billion) for the fiscal year that
ended in March, the first loss in a decade and
the biggest in 20 years.With the coronavirus
pandemic weighing on an already-sputtering
business, the stock has erased more than half
of its value since the arrest of Ghosn, who
also led Renault and the alliance that includes
Mitsubishi Motors Corp.
Communication from Nada to Saikawa
and other senior executives showed deep
concern about Ghosn’s plans to further inte-
grate the alliance, which gives the French au-
tomaker greater sway over Nissan via a 43%
stake. Renault had saved the Japanese man-
ufacturer from bankruptcy with an emer-
gency cash injection in 1999. That’s when
the French automaker dispatched Ghosn to
Nissan, who pulled off one of the most dra-
matic salvage jobs in auto industry history.
Yet, after two decades, with Ghosn di-
viding his time between the companies as
CEO of Renault and chairman of the alli-
ance, Nissan began to stumble.
Nada told CEO Saikawa in April 2018 that
Ghosn was becoming increasingly agitated
about Nissan’s performance and comments
by his handpicked successor, who said he saw
“no merit” in a merger between Renault and
Nissan. “He can create a major disruption and
you may become a victim of it,” Nada wrote to
Saikawa.The following month, Nissan issued
a profit outlook well below analysts’ estimates.
Ghosn was charged in Japan with under-
reporting about $80 million in income and
funneling money from Nissan without the
automaker’s knowledge into entities that he
controlled. Calling the Japanese legal system
a sham, Ghosn escaped the country late last
year by sneaking aboard a private jet inside
an audio-equipment box, making his way
to Lebanon via Turkey.
JUMP TO PAG E 2 3
 T U E S DAY J U N E 1 6 , 2 0 2 0
FROM PAG E 22
Two Americans who allegedly helped
smuggle Ghosn out of Kansai Internation-
al Airport, ex-Green Beret Michael Taylor
and his son, Peter Taylor, were arrested out-
side Boston last month at the request of
Japanese authorities. Japan’s government
is taking steps to request their extradition,
while the two have denied that any crimes
were committed.
Former Nissan executive and board
member Greg Kelly was arrested the same
day as Ghosn and remains free on bail in
Japan. He’s awaiting trial on charges that he
helped the former chairman underreport his
income. Prosecutors also charged Nissan in
the first round of indictments.
Nissan’s position since the arrests has
remained steadfast, with the company say-
ing “the cause of this chain of events is the
misconduct led by Ghosn and Kelly,” for
which it found “substantial and convincing
evidence” after investigating a whistle-blow-
er’s report. Both Ghosn and Kelly repeatedly
denied those allegations.
Nada, a Malaysia-born lawyer who over-
saw many of Ghosn’s affairs at Nissan and
joined the automaker in the 1990s, led the
internal probe and was implicated in some
of the alleged conduct being investigated
by the Tokyo prosecutor. At the same time,
emails show how Nada worked to gather in-
formation, traveling to Brazil and Lebanon
to investigate Ghosn’s use of company-pro-
vided homes.
Days before Ghosn’s arrest, Nada sought
to broaden the allegations against Ghosn,
telling Saikawa that Nissan should push for
more serious breach-of-trust charges, ac-
cording to correspondence at the time and
people familiar with the discussions. There
was concern that the initial allegations of un-
derreporting compensation would be hard-
er to explain to the public, the people said.
The effort should be “supported by me-
dia campaign for insurance of destroying
CG reputation hard enough,” Nada wrote,
using Ghosn’s initials, as he had done several
times in internal communications stretch-
ing back years.
When asked to comment for this story,
Saikawa referred to his prior public state-
ments rejecting the existence of a plot to
oust Ghosn. “There was no effort to remove
Renault’s influence” by removing Ghosn,
Saikawa told reporters in January after the
former chairman accused Nissan executives
of conspiring against him during a news
conference in Beirut. “There’s a huge dif-
ference between that and his crimes,” Sai-
kawa said then.
Saikawa stepped down as CEO in Sep-
tember after a Nissan investigation found he
had been paid excess compensation. Nada,
as well as other executives, also were over-
paid, an internal probe found last year, peo-
23 THEEDGE CEO MORNING BRIEF
W O R L D
BLOOMBERG
ple with knowledge of the matter have said.
As the date neared for the planned arrests
of Ghosn and Kelly, preparations were made
to assess how Renault’s board would react
and how to respond if the French company
were to assert its position.
Nissan should make it clear to Renault
that the French automaker had no right
to involve itself in the operations of its
alliance partner, and that Nissan wasn’t
obliged to offer positions within the com-
pany to candidates selected by Renault,
Nada said, according to people familiar
with the memo.
The contract binding the partner-
ship, called RAMA, as well as a Nether-
lands-based entity called Renault-Nissan
BV that was created to oversee its govern-
ance, should both be abolished as a result of
Ghosn’s arrest, Nada asserted. That would
give Nissan the right to acquire Renault
shares in order to disenfranchise Renault
or take it over, he is said to have written in
the memo.
Source of Friction
The RAMA has long been a source of
friction between Nissan and Renault. The
French automaker can exercise full voting
rights with its Nissan shareholding, while
the Japanese carmaker holds only a 15%
stake in Renault and lacks the ability to
vote its shares. The agreement also limited
Renault’s power over Nissan, cementing
Ghosn’s role in keeping the partnership
together. Moreover, the French state owns
15% of Renault with double voting rights,
giving it indirect sway over the Japanese
company.
The correspondence also for the first
time gives more detail into how Nissan may
have orchestrated Kelly’s arrest by bring-
ing him to Japan from the U.S. for a board
meeting.
“Greg wants to spend thanksgiving be-
fore coming to Japan,” Nada wrote to Sai-
kawa. Nada told Kelly that his attendance
was urgent and that he would be able to
return soon. “If he does not come, he will
never come back. I am scheduling a jet to
pick him up,” Nada wrote.
Kelly’s lawyer, James Wareham, said the
case against him was never about criminal
activity. “Greg Kelly has been caught up an
effort to remove Ghosn and get Renault out
of a controlling position,” Wareham said.
“To consummate the scheme, they wanted
a witness to be in their control under du-
ress, and then they went so far as to break
international extradition law to make that
happen.”
Open Discord
Months after the arrests, Nissan was able to
secure changes to its partnership with Re-
nault, but the new agreement — forged in
March 2019 — didn’t alter the alliance as
much as Nada had proposed.While Nissan
won more say over executive appointments
and eliminated Ghosn’s former post of alli-
ance chairman, the shareholding structure
remained intact. But the damage was done;
the relationship was left in tatters.
Later that year, Nissan withheld its en-
dorsement for Renault’s pursuit of a 50-50
merger with Fiat Chrysler, scuttling their bid
to create an automaker potentially worth 35
billion euros ($39.4 billion). While there’s
been a cease-fire of sorts since then, the
lopsided shareholding structure remains
unresolved. The companies announced
measures aimed at closer operational inte-
gration last month, as they seek to weather
the pandemic.
After Saikawa left last September, a new
triumvirate was put in place to run Nissan,
only to see one member, co-COO Jun Seki,
resign soon after he lost out on the top job.
CEO Makoto Uchida and COO Ashwani
Gupta are now left to face the monumental
task of turning around the maker of the Al-
tima sedan and Rogue mid-size sport utility,
even as the global economy sputters.
A year and a half after Ghosn’s downfall,
many of the key players remain in limbo.
Nada is still at Nissan, but was reassigned
to a smaller portfolio. Saikawa left the au-
tomaker’s board in February and no longer
has any formal ties to the company. Kelly,
who lives in an apartment in Tokyo, is still
waiting for his trial to start.
Then there’s Ghosn himself. The for-
mer CEO and chairman, who is living in
Beirut at a house bought by Nissan, has
vowed to restore his reputation and prove
his innocence. Japan says it will keep seek-
ing to bring Ghosn to justice, but the coun-
try doesn’t have an extradition treaty with
Lebanon and he is unlikely to ever face a
Japanese courtroom.
 T U E S DAY J U N E 1 6 , 2 0 2 0
What Asia’s best restaurant Odette
has planned in post-Covid era
SINGAPORE: A more casual restaurant
model might be here to stay even after restric-
tions from the coronavirus lift, according to
the chef at one of the world’s top restaurants.
Chef-Owner Julien Royer of Odette, a Sin-
gapore restaurant that holds three Michelin
stars in addition to the number-one position
in Asia’s 50 Best Restaurants for a second
straight year, envisions numerous potential
changes coming to the fine-dining scene.
“I see the industry continuing to pivot to-
ward shorter concise menus with more sub-
stance, even once elaborate fine-dining expe-
riences taking on new iterations or identities,
more casual carryout models, and off-premise
offerings to service the demands of the com-
munity,” Royer said in an email interview.
“As travel comes to a temporary slowdown,
fine dining could also shift to a more local
approach — adjusting the accessibility and
style of the experience for local gourmands
and community — for some restaurants, a
new audience and clientele.”
Odette is named in tribute to Royer’s
grandmother, who “taught him how some
of the most remarkable dishes can come from
the purest ingredients,” according to the eat-
ery’s website.The restaurant is a collaboration
between Royer andThe Lo & Behold Group,
which also operates concepts like the Tanjong
Beach Club and Straits Clan members’ club.
Odette is housed in Singapore’s National
Gallery, a busy museum — and in entering
the restaurant, one almost feels transported
to another world. The calm, soft environ-
ment washes over guests before they even
sit down at their table. Diners might enjoy
dishes such as Marukyo uni with spot prawn
tartare, mussel cloud and Kristal caviar; rose-
24 THEEDGE CEO MORNING BRIEF
L E I S U R E
BY JOANNA OSSINGER
Bloomberg
This season has brought to
fore how important it is to
work with our local suppliers,
and has reminded chefs across
the industry to be prepared
for any future shocks.”
— Chef-Owner Julien Royer
mary-smoked organic egg with smoked po-
tato syphon, chorizo Iberico and Meuniere
egg; or Kampot pepper-crusted pigeon with
confit egg, liver parfait and black garlic.
That ingredient list is clearly chosen with
effort. Royer said Odette has been fortunate
not to have experienced any major disrup-
tions in its supply line.
“This season has brought to fore how im-
portant it is to work with our local suppliers,
and has reminded chefs across the industry
to be prepared for any future shocks,” he said.
The restaurant has been working on mod-
ifications to facilitate operations in the Cov-
id-19 era and keep guests at ease, Royer said.
“Some of the best solutions come under
great pressure and I believe the ones that will
remain for the long-term are those that have
successfully and truly anticipated and met the
needs of guests,” Royer said. “At Odette, we
rolled out a contactless curbside pickup ser-
vice for all takeaway orders and also installed
BLOOMBERG
new cutting-edge purification technologies
for our space to disinfect the air and surfaces
for a higher level of assurance and peace of
mind for both guests and staff.”
The pickup and delivery service, referred
to as Odette at Home, has clearly been well
thought-out. Some of the dishes do take
preparation in the home kitchen, such as
heating or mixing ingredients together. But
the instructions, at least for the dishes in two
recent orders, have been relatively simple.
Every detail is considered — there’s a wel-
come from the restaurant, and the packaging
is pretty, with high-quality decorated boxes
that just beg to be kept and reused.
“Regardless of what lies ahead, what mat-
ters is we, as chefs and restaurateurs, do not
lose sight of our passion and why we do what
we do,” Royer said. “We must remain nim-
ble and be prepared to adapt quickly and
effectively, and I hope we can continue to
preserve the unique role restaurants play in
celebrating diverse cultures and bringing peo-
ple together.”
As for the fate of Singapore’s food scene
overall, with its renowned hawker centers and
famous debates about which of any type of
dish is best?
“Singapore is a nation that loves food with
such passion, making me especially hopeful
that once the threat of the pandemic has sub-
sided, we can look forward to rediscovering
the joys of dining together — something we
have all sorely missed,” Royer said. “It’s hard
to predict what the future holds but diners
are expected to be more conscious of their
choices and increasingly value quality over
quantity — seeking out exceptional dining
experiences.”
 T U E S DAY J U N E 1 6 , 2 0 2 0 25 THEEDGE CEO MORNING BRIEF

M A R K E T S

CPO RM2,422 -11 OIL US$38.16 -0.57 RM/USD 4.2755 RM/SGD 3.0654 RM/AUD 2.9138 RM/GBP 5.3612 RM/EUR 4.8113

Daily top 20 active stocks

FBM KLCI
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE (%) CAP (RM MIL)
PEGASUS HEIGHTS 503.69 0 0.015 50 150 1800
1,498.83
MINETECH RESOURCES 444.86 0 0.28 229.41 279.9 1600
AT SYSTEMATIZATION 335.71 -0.01 0.135 237.5 301
LUSTER INDUSTRIES 246.66 -0.02 0.115 27.78 250 1400
K-ONE TECHNOLOGY 228.27 -0.045 0.475 137.5 346.2
1200
ASIA POLY HOLDINGS 223.89 0.01 0.125 108.33 57.8 May 14, 2019 June 15, 2020
LAMBO GROUP 171.57 -0.005 0.02 -50 50.8
CONNECTCOUNTY HOLDINGS 171.46 -0.015 0.33 266.67 121.4
VSOLAR GROUP 158.79 0.02 0.055 96.43 22.6
World

equity indices
KNM GROUP 133.24 -0.02 0.2 -46.67 523
VELESTO ENERGY 116.57 -0.01 0.15 -60.53 1,232.30 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
I-STONE GROUP 111.08 -0.025 0.185 -24.49 226 (%) (%)
BUMI ARMADA 109.41 -0.01 0.22 -58.49 1,294.90 DOW JONES 25605.54 477.37 1.9 INDONESIA 4816.34 -64.02 -1.31
AIRASIA GROUP 89.76 -0.105 0.865 -49.12 2,890.80 S&P 500 3041.31 39.21 1.31 JAPAN 21530.95 -774.53 -3.47
HIBISCUS PETROLEUM 87.43 -0.04 0.595 -36.7 945 NASDAQ 100 9663.77 75.29 0.79 KOREA 2030.82 -101.48 -4.76
GREEN PACKET 84.53 -0.03 0.66 -4.35 655.8 FTSE 100 6056.58 -48.6 -0.8 PHILIPPINES 6163.82 -312.42 -4.82
JAG 73.95 -0.005 0.085 142.86 152.1 AUSTRALIA 5830 -129.9 -2.18 SINGAPORE 2613.88 -70.75 -2.64
MTOUCHE TECHNOLOGY 72.66 0.005 0.065 -35 43 CHINA 3954.99 -48.09 -1.2 TAIWAN 11306.26 -123.68 -1.08
SAPURA ENERGY 66.31 -0.005 0.09 -66.67 1,438.10 HONG KONG 23776.95 -524.43 -2.16 THAILAND 1341.99 -40.57 -2.93
KANGER INTERNATIONAL 66.27 0.005 0.08 0 98.8 INDIA 33238.54 -542.35 -1.61 VIETNAM 832.47 -31.05 -3.6
Data as compiled on June 15, 2020 Source: Bloomberg Data as compiled on June 15, 2020 Source: Bloomberg

Top gainers (ranked by %) Top losers (ranked by %)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP (%) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)
VSOLAR GROUP 0.055 57.14 158,786.40 96.43 22.6 NETX HOLDINGS 0.01 -33.33 14,179.50 -50.00 46
BARAKAH OFFSHORE PETROLEUM 0.02 33.33 594.50 -20 16.7 EA HOLDINGS 0.01 -33.33 7,033.00 0.00 50.7
EKA NOODLES 0.045 28.57 1,314.00 -18.18 14 MLABS SYSTEMS 0.025 -28.57 23,495.70 -37.50 23
HB GLOBAL LTD 0.095 26.67 64,161.20 46.15 44.5 EDUSPEC HOLDINGS 0.015 -25 34,845.20 -40.00 36.2
DPS RESOURCES 0.08 23.08 14,057.30 0 47 LAMBO GROUP 0.02 -20 171,574.40 -50.00 50.8
SYSTECH 0.195 21.88 31,300.80 21.88 67.4 NEXGRAM HOLDINGS 0.02 -20 34,312.40 33.33 41.4
DOLPHIN INTERNATIONAL 0.085 21.43 63,987.60 -34.62 20.8 DGB ASIA 0.02 -20 5,320.90 -82.61 21.1
CHINA OUHUA WINERY HOLDINGS 0.035 16.67 2,793.10 0 23.40 TALAM TRANSFORM 0.02 -20 369.90 -42.86 85.9
ESTHETICS INTL GROUP 0.49 13.95 5.00 -10.91 116.20 KEY ASIC 0.08 -20 10,691.70 60.00 84.7
FEDERAL INTERNATIONAL HOLDIN 0.535 12.63 10,883.70 67.19 57.60 ACOUSTECH 0.365 -17.05 19,508.50 7.35 71
NICHE CAPITAL EMAS HOLDING 0.045 12.5 110.00 -30.77 31.6 IDIMENSION CONSOLIDATED 0.025 -16.67 4,991.10 0.00 6.8
SBC CORPORATION 0.4 11.11 77.80 -8.05 103.20 MQ TECHNOLOGY 0.025 -16.67 2,485.20 0.00 17.7
ASIA POLY HOLDINGS 0.125 8.7 223,894.50 108.33 57.80 D.B.E. GURNEY RESOURCES 0.025 -16.67 2,040.50 -16.67 70.9
MTOUCHE TECHNOLOGY 0.065 8.33 72,664.60 -35 43 RGT 0.23 -16.36 20,429.00 35.29 132.7
EASTLAND EQUITY 0.065 8.33 801.00 -18.75 21.10 SCOMI ENERGY SERVICES 0.105 -16 1,527.00 -70.00 49.2
SCANWOLF CORP 0.205 7.89 3,301.90 -6.82 21.50 YBS INTERNATIONAL 0.105 -16 1,258.30 -12.50 25.2
MERIDIAN 0.07 7.69 911.90 7.69 40.6 HSS ENGINEERS 0.535 -15.75 3,933.20 -36.69 265.3
PAOS HOLDINGS 0.295 7.27 27.00 -20.27 53.40 XOX 0.055 -15.38 35,930.80 37.50 70.3
BTM RESOURCES 0.15 7.14 1,615.00 -25 21.2 RADIANT GLOBALTECH LTD 0.31 -15.07 35,463.60 -1.59 162.8
KANGER INTERNATIONAL 0.08 6.67 66,272.20 0 98.8 TEK SENG HOLDINGS 0.51 -15 25,254.90 82.14 183.9
Data as compiled on June 15, 2020 Source: Bloomberg Data as compiled on June 15, 2020 Source: Bloomberg

Top gainers (ranked by RM) Top losers (ranked by RM)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)
MALAYSIAN PACIFIC INDUSTRIES 10.98 0.08 136.8 -4.02 2,183.90 TOP GLOVE CORP 15.2 -1.7 38,662.60 223.40 40,420.70
SERN KOU RESOURCES 1.12 0.06 3,314.20 34.94 285.50 PETRONAS DAGANGAN 20.5 -1.5 182.7 -10.61 20,365.80
FEDERAL INTERNATIONAL HOLDIN 0.535 0.06 10,883.70 67.19 57.60 SUPERMAX CORP 6.87 -1.04 58,739.40 394.24 8,872.10
FRASER & NEAVE HOLDINGS 32.56 0.06 62.60 -6.54 11,942.30 HONG LEONG FINANCIAL GROUP 14.08 -0.92 206.60 -16.69 16,125.00
ESTHETICS INTL GROUP 0.49 0.06 5 -10.91 116.20 HARTALEGA HOLDINGS 11.68 -0.84 20,203.90 113.14 39,571.90
KIM HIN INDUSTRY 0.75 0.04 3.90 -28.57 105.20 KOSSAN RUBBER INDUSTRIES 8.19 -0.79 10,631.20 96.88 10,474.50
MAGNA PRIMA 0.8 0.04 138.40 -5.88 266.10 HEINEKEN MALAYSIA 21.18 -0.58 169.30 -21.90 6,398.40
ENRA GROUP 0.97 0.04 2.00 -19.17 130.90 HAP SENG CONSOLIDATED 8.32 -0.58 304 -16.63 20,714.10
SBC CORPORATION 0.4 0.04 77.80 -8.05 103.2 HONG LEONG BANK 14.8 -0.5 1,180.30 -14.45 32,082.20
ATLAN HOLDINGS 3.77 0.04 1 -8.72 956.30 AEON CREDIT SERVICE M 9.33 -0.47 282.30 -34.02 2,366.40
MESINIAGA 0.925 0.035 11.30 -24.80 55.90 MEGA FIRST CORP 6 -0.44 3,081.50 17.42 2,729.80
SYSTECH 0.195 0.035 31,300.80 21.88 67.40 PETRONAS CHEMICALS GROUP 6.47 -0.4 4,481.50 -11.97 51,760.00
GAS MALAYSIA 2.8 0.03 34.10 1.82 3,595.20 LPI CAPITAL 13.46 -0.4 100.10 -10.86 5,362.20
HOCK SENG LEE 1.1 0.03 280.30 -17.29 604.50 RUBBEREX CORP M 2.75 -0.39 9,691.20 409.26 762.90
ASIA FILE CORP 1.82 0.02 41.00 -17.65 354.50 PUBLIC BANK 16.42 -0.38 4,281.60 -15.53 63,744.70
YNH PROPERTY 3.05 0.02 101.10 12.13 1,611.90 PANASONIC MANUFACTURING MALA 29.5 -0.38 8.60 -20.27 1,792.00
ENG KAH CORP 0.735 0.02 12.7 -25.38 52 COMFORT GLOVE 2.57 -0.36 66,114.30 225.32 1,498.20
JHM CONSOLIDATION 0.895 0.02 20,479.60 -46.41 498.20 AJINOMOTO MALAYSIA 14.6 -0.32 18.60 0.83 887.70
LINGKARAN TRANS KOTA HLDGS 4.02 0.02 168.50 -12.42 2,136.10 BRITISH AMERICAN TOBACCO 10.68 -0.32 1,828.40 -29.18 3,049.50
VSOLAR GROUP 0.055 0.02 158,786.40 96.43 22.60 HONG LEONG INDUSTRIES 7.88 -0.32 145.9 -24.38 2,517.40
Data as compiled on June 15, 2020 Source: Bloomberg Data as compiled on June 15, 2020 Source: Bloomberg