Corporate News

       Short Position - Top Glove, OPR, economy The process to get the ban lifted was arduous and costly, but eventually had to be done in order to rectify not only the image of a top rubber glove company in the country but also that of companies in Malaysia. Top Glove was not the only company that has been hit by an import ban by the US for what it perceives as labour standards and practices that do not meet its mark. With other companies now having issues with the US government over labour practices, the treatment of foreign labour is now a focus of not only governments but also investors. TNB’s ambitious green energy plans TNB president and CEO Datuk Baharin Din says the group targets to double its RE capacity to 8,300MW by 2025 from 3,400MW currently. Its current RE capacity in the international market is only 666MW. While he declines to comment on the amount of capex that TNB is allocating for its RE plans, he reveals that the amount “would be substantial” as TNB aims to add 20GW by 2050 to its RE portfolio. He points out that TNB is looking into the European market for RE assets, as the industry is more mature there. For perspective, currently, coal is the main fuel used in TNB's power generation, accounting for almost 50% of the fuel mix. Property

       Making good progress The property sector has reported improving business operations and construction progress, as the lockdown eases and vaccination rate among workers in the sector continue to rise. While the sector had reported a healthy performance for the first half of the year (H1'21), the brokerage noted the recovery in H2'21 could be weighed by disruptions caused by the national lockdown, cautious bank lending and soft consumer sentiment. In its report, AmInvestment Bank Research explained that property sector could see a slowdown in recovery in H2'21, as the tighter Covid-19 containment measures, which took effect in June, have led to closure of sales galleries and halted property construction activities, which delayed the recognition of progress billings. Semiconductors

       Malaysia to increase efforts to address semiconductor backlog orders Malaysia is doing its best to reduce the backlog of orders in the semiconductor industry due to the disruption of operations in the past 12 months, following the imposition of lockdowns to curb the COVID-19 pandemic. The lockdowns saw many factories in Malaysia and other countries suspending their operations or operating in limited capacities. president Datuk Seri Wong Siew Hai said as Malaysia plays a significant role in the global semiconductor supply chain, it is critical to expand the sector's capacity in light of the severe global shortage of ICs. Palm Oil

       India's refiners seen to favour palm oil imports from Malaysia India's refiners are seen to be favouring palm oil imports from Malaysia, as they seem to have been put off by the heavy export tax and levy imposed by Indonesia. According to recent reports, Indonesia imposed higher levies on crude palm oil exports in December to raise funds for its ambitious palm-based biodiesel programme, aimed at maximising domestic use of the edible oil. Therefore, he suggested for both Malaysia and Indonesia to hold a campaign in India to change the people's mindset which would likely lead to higher demand for palm oil imports into the country. KLK completes acquisition of IJM Plantations Kuala Lumpur Kepong Bhd (KLK) has completed its acquisition of a 56.2% stake in IJM Plantations Bhd (IJMP), thus making it a subsidiary of the KLK group. In a statement yesterday, KLK chief executive officer and executive director Tan Sri Lee Oi Hian (pic) said the acquisition will further strengthen the group's plantation business through better synergies across its value chain. Upon the completion of the share sale and purchase agreement, the group is obliged to extend an unconditional mandatory general offer to acquire all the remaining IJMP shares not already held by the group for a cash offer of RM3.10 per offer share. Aviation

       Ready to fly to Langkawi? Malaysia Aviation Group (MAG) subsidiaries are offering low fares and travel packages leading up to the opening of Langkawi Island this Malaysia Day, Sept 16. Malaysia Airlines, Firefly and MHholidays said the low fares and travel packages are for immediate booking until Sept 30, for travel from Sept 16 to Oct 31. They can enjoy the perks of travelling full service with cabin baggage allowance of 7kg, complimentary snacks, meals and beverages and inflight entertainment besides earning additional 50% Enrich bonus points. Mavcom approves Korean Air-Asiana Airlines merger in Malaysia's first competition-related merger case The Malaysian Aviation Commission (MAVCOM) today announced that it has approved the merger between Korean Air Lines Co, As the merger involves the air passenger services between South Korea and Malaysia, Korean Air Lines and Asiana Airlines submitted a voluntary notification and application of an anticipated merger to MAVCOM on March 19, 2021. MAVCOM said this decision is the first competition-related merger case to be analysed by any competition authority or sector regulator in Malaysia. Economy

       Harness data, technology to nurture recovery - Tengku Zafrul Data and technology will be among the key elements in charting Malaysia’s economic recovery post-COVID-19 pandemic, said Finance Minister and National Recovery Plan (NRP) Coordinating Minister, Tengku Datuk Seri Zafrul Tengku Aziz. He said that the efforts also include strengthening the digital ecosystem, supporting digital adoption as well as privacy and data protection. As for the country's 5G aspirations, he said the government is also accelerating the development and growth of high-speed, affordable and reliable 5G connectivity and coverage. Zafrul: FDI inflows signal brighter recovery outlook As at end-August 2021, foreign holdings of Malaysian government bonds rose by RM23.9 billion to RM226.1 billion, comprising RM191.7 billion or 40.3% of total MGS; and RM34.4 billion or 8.6% of total MGII. As at June 2021, more than 50% of the foreign holdings of Malaysian government bonds comprised long-term investors. The outlook for the fourth quarter (Q4 2021) seems brighter as rapid vaccination rates enable the reopening of more economic sectors, Finance Minister and National Recovery Plan (NRP) Coordinating Minister, Tengku Datuk Seri Zafrul Tengku Aziz said.