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News

Ex-banker behind chipmaker Renesas targets US$100bil value

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Tokyo: A decade ago, Renesas Electronics Corp was under government control and bleeding cash. Now worth US$35bil, the Japanese chipmaker is targeting a market value of around US$100bil by 2030, thanks to a string of overseas acquisitions. Behind those deals is former Merrill Lynch banker Hidetoshi Shibata. Five years into his tenure as chief executive officer, the 51-year-old sees new business in India and in artificial intelligence-enabling microcontrollers helping the company double annual revenue to a record US$20bil by the end of the decade. His ambition to triple the company’s valuation to 16 trillion yen to 17 trillion yen comes as a fresh surge in artificial intelligence (AI) enthusiasm lifts shares of the chipmaker behind Toyota Motor Corp, Honda Motor Co and Nissan Motor Co to their highest since the global financial crisis. Formed out of the chip arms that originated from NEC Corp, Hitachi Ltd and Mitsubishi Electric Corp, Renesas in 2009 was the world’s No. 3 chipmaker in sales after Intel Corp and Samsung Electronics Co. But its fortunes faded alongside its Japanese clients. In addition, damage to a key factory in the March 2011 Japan quake prompted automakers to cut their exposure to any single supplier, and Renesas soon ceded ground to rival NXP Semiconductors NV. Since joining the company as chief financial officer in 2013, Shibata’s orchestrated a string of acquisitions. This year, Renesas announced a US$6bil deal to buy Australia-listed software firm Altium Ltd to move upstream in product development and electronics design. In 2021, the company acquired Britain-based Dialog Semiconductor Plc for US$6bil and earlier bought San Jose-based Integrated Device Technology Inc and Milpitas, California-based Intersil Corp, in part to expand beyond the automotive sector into data centres and consumer devices. Shibata also expressed interest in compound semiconductors, which remain popular among electric vehicle (EV) makers. “We need to be a real global player,” Shibata said in an interview last month. “It’s meaningless to be a major player in Japan. We have to be at the top, globally. I want to make that happen.” His buying spree has helped reduce Renesas’ reliance at home and expand abroad. Japan accounted for 26% of total sales last year, down from 44% in 2016. Sales to other Asian countries and Europe and North America have all increased during the same period. India, which currently accounts for only a fraction of Renesas sales, will be important to future growth, according to Shibata. The company aims to earn at least 10% of revenue from the South Asian nation by the end of this decade, betting on that market’s fast-growing needs for electronics. — Bloomberg

Energy & Technology, News

AM Green, SJVN Inks Renewable Energy Deal for Green Ammonia Facilities

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KUALA LUMPUR: India’s energy transition solutions provider, AM Green and a wholly owned subsidiary of SJVN Limited, SJVN Green Energy Limited (SGEL), have entered into a Memorandum of Understanding (MoU) for a long-term agreement to supply and source renewable energy. According to AM Green, under the agreement signed on 26 June, SGEL will supply approximately 4,500 megawatts (MW) of carbon-free energy to AM Green’s upcoming green ammonia facilities. SGEL will set up this capacity through solar and wind power, while AM Green will integrate it with pumped hydro storage to ensure a steady supply of green energy to AM Green facilities. Greenko Group & AM Green Founder, Mahesh Kolli said the company is delighted to partner with SJVN on one of the world’s largest carbon-free, renewable energy supply contracts. “This partnership demonstrates AM Green’s emerging leadership position as a global clean energy transition solutions platform while contributing to India’s ambition of emerging as an exporter of reliable, sustainable and lowest-cost green molecules and its derivatives accelerating industrial decarbonisation globally,” he said. Meanwhile, SJVN Green Chief Executive Officer, Ajay Singh said: “We are elated to embark on this collaboration with AM Green, as it holds tremendous potential for accelerating the development of renewable assets in India. The project also marks SJVN’s foray into supplying power to private sector entities.” SJVN plans to execute the project in three phases, with the first phase delivering 1,500MW within 2 years. This initiative is a major milestone for SJVN’s renewable energy expansion in India, supporting its goal of reaching 25,000MW by 2030 and 50,000MW by 2040. AM Green, promoted by the founders of Greenko, targets to produce 5 million tonnes per annum (MTPA) of green ammonia by 2030, equivalent to about 1 MTPA of green hydrogen. This represents a fifth of India’s target for green hydrogen production under the country’s National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030. — BERNAMA

News, Property

RTS Link Project Estimated Infrastructure Cost Rises 29.9% to RM5.24 Bil

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KUALA LUMPUR: The estimated cost of the Rapid Transit System Link (RTS Link) infrastructure project had increased by 29.9% or RM1.20 billion to RM5.24 billion as of 31 December 2023 compared to the original estimated cost of RM4.03 billion in January 2018. According to the Auditor General’s Report 2/24 (LKAN), this increase was partly due to the expansion of the depot work scope from light to heavy maintenance, new contracts for the Traffic Diversion Scheme, and the construction of the Customs, Immigration, and Quarantine (CIQ) Complex. Additionally, supplementary infrastructure work for iconic facades and aesthetic flyover structures, additional land acquisition costs, and extra infrastructure costs for the construction of parking facilities and additional piling at the CIQ Complex also contributed to the cost increase. According to the report, the government allocation of funds for the Klang Valley Mass Rapid Transit (KVMRT) project and the RTS Link project have been utilised for approved public infrastructure projects. “However, the increase in project costs can affect the government’s current financial position,” it said. The RTS Link is a 4km cross-border rapid transit system connecting Malaysia with Singapore, comprising two stations: the Bukit Chagar Station in Johor Bahru and the Woodlands North Station in Singapore. According to the project developer and asset owner, Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), the increase in project costs was unavoidable due to the impact of the Covid-19 pandemic, which led to a rise in raw material prices worldwide. There were also changes in the work scope to ensure a holistic traffic solution and land acquisition costs. On 24 July 2020, the government agreed to finance the development of the RTS Link project through the development expenditure allocation via the Ministry of Transport (MoT). Clause 10.1 of the Project Development and Management Agreement (PDMA) Stipulates that the government shall finance the development of the RTS Link infrastructure according to the estimated project cost of RM5.24 billion as stated in Clause 6.3. Disbursement of the fund shall be carried out every quarter on requests from Malaysia Rapid Transit System Sdn Bhd (MRTS), which is a subsidiary of MRT Corp which is the developer and owner of public infrastructure for the Malaysian portion of the RTS Link project. According to the LKAN, the MoT had disbursed RMI.94 billion or 37.1% of the government’s total approved allocation of RM5.24 billion to MRTS as of 31 December 2023. A total of RM1.55 billion or 29.6$ was spent on payments to contractors and consultants. — BERNAMA

Investment & Market Trends

SC Sues Dato’ Dr. Yu Kuan Chon for Market Manipulation

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KUALA LUMPUR: The Securities Commission Malaysia (SC) on 24 June 2024 initiated a civil suit at the Kuala Lumpur High Court against Dato’ Dr. Yu Kuan Chon (Yu) for market rigging and manipulation breaches involving shares in Shangri-La Hotels (M) Bhd (Shang). According to the Statement of Claim filed by the SC, the regulator alleged that Yu had traded Shang shares between 1 March 2018 and 24 July 2018 in a manner that caused a surge in the traded volume and share price of Shang. Yu had allegedly traded and transacted in Shang shares using 15 Central Depository System (CDS) accounts during the material period. His trades represented approximately 81.9% of the total volume of Shang shares traded on the market during this period. The SC claimed that Yu had engaged in manipulative activities in the trading of Shang shares, and that Yu’s trading activities were in breach of sections 175(1) and/or 176(1) of the Capital Markets and Services Act 2007. In its civil suit, the SC sought various orders which include for Yu to: 1. Pay the SC the following: a) Disgorgement sum amounting to RM26,572,397.70 which is three times the amount of monetary gain of RM8,857,465.90 made by Yu as a result of the manipulation; b) Civil penalty of RM1 million; 2. Be barred from: a) Becoming a chief executive or director or be involved in the management of any public company or its subsidiaries whether directly or indirectly for a period of five years; and b) Trading on the stock exchange for the same period. Market manipulation undermines the integrity and transparency of capital markets, which can erode investor confidence and disrupt market efficiency. The SC views market manipulation very seriously and will continue to maintain a strong enforcement stance to protect investors and uphold the integrity of the capital markets.

Investment & Market Trends

Singapore AI marketing company, gimmefy.ai, Expands into North American Market

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gimmefy.ai , a leading generative AI marketing platform, headquartered in Singapore, is excited to announce its expansion into North America, with strategic partnership plans in the Philippines to follow suit. gimmefy stands out as a high-credibility player in the market, recognized by the IMDA (Infocomm Media Development Authority) of Singapore. This endorsement, through the IMDA Spark program, signifies gimmefy’s commitment to responsible AI development. A regional partnership with Philippine’s ActivAsia group is also on the cards in the following weeks to bring a customized solution specifically for the Filipino market. With a robust track record of success in the Asian market, gimmefy is now set to bring its innovative AI-driven marketing solutions to North American businesses. The platform is built on the perfect marriage between advanced AI models and the best of marketing expertise. Essentially it’s built for and by marketers. Shalu Wasu, gimmefy’s CEO and co-founder, is a seasoned marketer, both on the brand and agency sides. He states, “What truly sets gimmefy.ai apart is our commitment to combining the power of AI with the wisdom and experience of human marketers. gimmefy’s approach ensures that content created by the platform is not only creative but also aligns perfectly with what friends in the marketing industry demands of us.” Matt Fusco, a seasoned industry veteran, will spearhead gimmefy’s efforts in North America. As CEO, North America, Fusco will focus on building gimmefy’s overall presence, assembling a dynamic team, and capitalizing on the substantial opportunities in the North American market. His leadership will be pivotal in establishing gimmefy.ai as a key player in the generative AI marketing space. “As the marketing landscape evolves, so do the needs of marketers. GPT-based solutions, while offering an initial foray into AI-powered marketing, now struggle to deliver the effectiveness, diversity, and speed demanded by today’s professionals,” said Matt Fusco. gimmefy.ai uses not just one, but multiple leading large language models (LLMs), combined with the expertise of seasoned marketers. This potent blend fuels a platform equipped with over 140 automated tasks and 9 specialized AI assistants, capable of generating diverse content formats, multiple result sets, crafting captivating copy, and even assisting with stunning visuals. gimmefy.ai is the next step in AI marketing, empowering marketers to achieve exceptional results. Added Fusco “Businesses and brands trying to be seen and heard in a market like North America are particularly at an advantage. The North American landscape is diverse, hyper-creative, and steeped in competition. With a marketing-specific AI partner like gimmefy, there will be some positive disruption creatively, as well as a creation of opportunities for marketing teams.” gimmefy’s clients, including global names like SEK, IMDA, DBS, ActivAsia, Motul, and many more, rave about experiencing up to 90% savings in time and costs. Not surprisingly, gimmefy is a trusted partner for businesses of all sizes, from small, resource-constrained teams to large agencies managing multiple accounts. gimmefy.ai’s expansion into North America marks a significant milestone in its journey to become a global leader in AI-powered marketing. The company’s commitment to innovation and customer success will continue to drive its growth and impact in the industry. With Matt Fusco’s appointment, gimmefy.ai aims to build a talented team in North America and partner with businesses to unlock new levels of engagement and growth through the firm’s AI solutions.

ESG

Participants from Asean, Hong Kong & China benefitted from SME Corp’s forum on ESG sharing

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KUALA LUMPUR: SME Corp Malaysia has led a pivotal Asean Hong Kong, China SMEs Going ESG Policy Dialogue and Workshop 2024. The event today drew over 300 participants from local SMEs, Asean countries and Hong Kong and China. It served as a platform for knowledge exchange, fostering awareness of environmental, social and governance (ESG) practices, and sharing best practices on sustainability among Asean countries, SME Corp said. The one-and-a-half-day event centred around the theme “Empowering SME sustainability”. “This event, attended by government officials, ESG experts, SME owners, representatives from financial institutions and academia, aimed to educate participants on the importance of ESG practices, development of ESG strategy, as well as measurement and monitoring of ESG performance. “The dialogue session focused on developing policy recommendations to promote the adoption of ESG practices among SMEs, sharing stories of SMEs pioneering the ESG journey, and highlighting efforts of the government and relevant agencies in the region.” SME Corp added that the sharing session specifically provided participants with insights into best practices, challenges, and recommendations from prominent speakers. Rizal Nainy, the chief executive officer of SME Corp shared that being ESG-ready is a huge advantage for SMEs to access local and global markets. “Hence, SME Corp has launched the ESG Quick Guide for MSMEs to facilitate the adoption of ESG practices among MSMEs, which can be downloaded for free upon taking the ESG assessment on our website.” Given its importance, SME Corp has taken the initiative to recognise the MSMEs that actively integrate ESG practices into the company’s business and strategy with a new special award under the Enterprise 50 Programme this year, the Best E50 Award for ESG Practice.–New Straits Times

News

Malton to buy Genting land for RM65mil

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PETALING JAYA: Malton Bhd is acquiring four parcels of Genting land from Sering Manis Sdn Bhd, a 51%-owned subsidiary of Global Oriental Bhd, in Bentong, Pahang, for RM65mil. In a filing with Bursa Malaysia, Malton said the parcels of land measure approximately 30.167 acres and is sited off and to the east of Jalan Meranti, which is connected to the main road leading up to Resorts World Genting and to the south of Genting View Resort, within the locality of Genting Highlands. Malton said the proposed development for the Genting land is expected to comprise serviced apartments and luxury villas, and is expected to generate an estimated gross development value of approximately RM1.29bil. “The proposed acquisition provides an opportunity for the group to acquire a price of prime land in Genting Highlands, which has seen an increase in development activities with several other property developers having already acquired land and commenced development within the vicinity, which are being marketed as a holiday home or for investment purpose given the cooler temperatures and close proximity to Resorts World Genting.”- The Star

Investment & Market Trends, News

Malaysia’s Economy Set to Meet Growth Target, GDP to Expand 4-4.5%

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KUALA LUMPUR: Malaysia’s economy is set to meet its growth target, with gross domestic product (GDP) growth projected between 4%-4.5%. The Malaysian Rating Corporation Bhd (MARC) said an upside to growth would emanate from the potential for faster project implementation under multiple development blueprints. “However, sustaining private spending growth is challenged by consumer expectations of higher inflation due to the ongoing rationalisation of subsidies,” it said in a statement following the release of its ‘Mid-year Macroeconomic Outlook 2024: Stable Global Growth In A Moderate Easing Cycle’ report. MARC said that while the tourism sector registered higher growth in the first 4 months of 2024, sustaining the rebound requires continued enhancement of tourism policies amid higher competition from ASEAN peers. Besides, it said Malaysia’s disinflationary trend has ended, although the inflation rate has remained relatively mild, with inflation in the first quarter of 2024 (1Q 2024) rising to 1.8% from 1.5% in 4Q 2023. “We expect inflation at 2.5% to 3% with the second round of inflationary effects from the subsidy rationalisation, while noting such policies were designed in a manner that limits the extent of inflation variance,” it said. Additionally, MARC said geopolitical uncertainties increase risks to inflation, alongside volatility in commodity prices and rising costs through the supply chain. However, it opined that sustained inflation and growth in Malaysia should enable Bank Negara Malaysia the scope to keep the overnight policy rate unchanged at 3% for 2024. MARC said global economic growth is expected to sustain a moderate level in 2024, with the growth forecasts for advanced European economies remaining relatively stable despite lingering weaknesses. “The strength of the US economy may moderate the pace of policy rate cuts, potentially leading to a less synchronised global monetary policy easing, compared to some central banks in Europe that have already begun reducing rates. “Persistent mixed readings on inflation, especially in the US, have led to the paring down of expectations of interest rate cuts,” it added. — BERNAMA

Property

IJM likely to win more data centre jobs

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PETALING JAYA: IJM Corp Bhd is the latest construction outfit to win a data centre job and it may play catch up to other contractors such as Sunway Construction Group Bhd (SunCon) and Gamuda Bhd, which have been winning more jobs in the data centre space. IJM announced on Wednesday that it has been awarded its first data centre win, a RM331.7mil contract to design and construct Block 2 of the Iskandar Puteri Data Centre in Johor, for TM Technology Services Sdn Bhd. Construction begins from July this year and the project is slated for completion in the third quarter of 2025. CGS International Research (CGSI Research) said IJM is likely to win more jobs in the data centre sector due to its strong track record in building projects and also its industrialised building system (IBS) plant in Bestari Jaya, Selangor. The research house added that SunCon may be more selective in its tenders, given the urgency to complete the Sedenak data centre in Johor, while Gamuda’s strategy is to target hyperscalers that value speed of construction. According to CGSI Research, IJM’s latest contract win is different from Telekom Malaysia Bhd  and Singapore Telecommunications Ltd’s announcement on June 18, which was to develop a hyper-connected artificial intelligence-ready data centre campus in Johor with an initial capacity of 64 megawatt (MW) – potentially to be scaled up to 200MW. The research house said IJM appears to be on track to achieve its RM5bil new order target for the financial year ending March 31, 2025 versus RM3.7bil in the financial year 2024 (FY24), with a total order book of RM7.3bil as at June. “With the RM1bil total new wins for an industrial warehouse and semiconductor factory announced on June 21, this data centre project brings year-to-date FY25 wins to RM1.3bil. “Other potential wins include the North Pantai Expressway extension (RM1bil), civil servant housing project in Nusantara Indonesia (RM1bil), Penang light rail transit, ART Blue Line in Sarawak and other industrial buildings, data centres and semiconductor factories,” it added. The research house reiterates its “add” call on the counter with a target price (TP) of RM3.66 as it continues to like IJM as a diversified infrastructure proxy in Malaysia. Meanwhile, RHB Research estimates around 20% to 30% of IJM’s construction order book comes from industrial jobs. “In fact, IJM stands to be the contractor with the highest number of industrial job wins (excluding data centres) in the past 12 months compared to other Malaysian large-cap contractors. “IJM has two factories for industrial concrete piles in Ulu Choh and Senai, Johor, which we view may be utilised for providing concrete piles for the latest data centre job.” The research house believes that IJM may continue expanding its foray into the industrial building segment, as the number of planned supplies of industrial properties surged to 1,372 units in 2023 versus the previous five years which hovered below 900 units. RHB Research kept its “buy” call with a TP of RM3.60, with no changes to its earnings estimates, as the latest job wins were within its FY25 job replenishment target of RM5bil.–The Star

Events

CICC hosts the 2nd China-Southeast Asia Economic and Finance Forum in Singapore

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BEIJING: On 26th June, China International Capital Corporation (“CICC”), successfully held the 2nd China-Southeast Asia Economic and Finance Forum in Singapore. This one-day forum brought together hundreds of government officials, investors, corporate representatives across China and ASEAN to discuss opportunities and challenges in deepening economic and financial cooperation in the regions. In the opening speech, Mr. Wang Shuguang, Member of the CICC Management Committee and Head of the Investment Banking Department, presented the business strength of CICC and highlighted CICC’s vision of China-Southeast Asia cooperation in the capital market. “We see significant opportunities in private fundraising for local unicorns and fast-growing start-ups, as well as a rise in cross-border investments from Chinese companies, particularly in sectors such as consumer, TMT, fintech, logistics and EV in Southeast Asia.” Wang said that CICC will further increase its investment and commitment in Southeast Asia in the future. In another speech, Mr. Stephen Ng, Head of CICC Southeast Asia and South Asia and CEO of CICC Singapore, noted that as the economies of Southeast Asian countries experience rapid development, numerous opportunities are emerging. He emphasized that by embracing the principles of collaboration, learning, and growth, we can collectively work towards building a more inclusive, innovative, and sustainable future for all. At the forum, more than 60 experts and CICC representatives shared profound observations and insightful views both from China and ASEAN perspective, covering areas, such as macroeconomics, global and regional policies, investment strategies, industry and financial market trends, as well as business dynamics. These insights brought meaningful value to the decision makings and business strategies for the diverse audience. Topics at the Forum included “China Macro & Investment Outlook”, “Enhancing Capital Markets Connectivity in the Region”, “China EV Value Chain and Internationalization”, “Energy Transition and Green Finance”, “Consumer Trend in China and Southeast Asia“, “The Significance of China Southeast Asia Cooperation in the Healthcare Industry”, “Opportunities and Challenges: Towards a Sustainable Asia REITs Ecosystem”, “Asian Credit Markets: Impact of Higher Interest Rates and Tighter Financial Conditions”, “The Development of the AI Industry in China“, amongst others. CICC and industry experts also held parallel sub-forums and side meetings, providing attendees with valuable opportunities for face-to-face communication and networking. The Forum aimed to expand CICC’s business influence in Southeast Asia and to support the Company in seizing opportunities arising from accelerating cross-border capital flows between China and Southeast Asia. By growing its business activities in Southeast Asia, CICC will continue strengthening its dialogues with public sectors, enterprises, financial institutions and think tanks within the region, promoting international capital market cooperation, and facilitating cross-border capital flows in the region. About China International Capital Corporation Limited (CICC): China International Capital Corporation Limited (CICC) was founded in 1995. Our extensive network and cross-border business practices have enabled us to offer high-quality, value-added financial services to a diversified client base. This includes a full-service and balanced business model that offers investment banking, equities, FICC (Fixed Income, Currencies and Commodities), asset management, private equity and wealth management services, all of which draw on our comprehensive research and technology capability. Headquartered in Beijing, the Group has over 200 securities business offices in China, and established subsidiaries or branches in seven international financial centers, including Hong Kong of the PRC, New York, London, Singapore, San Francisco, Frankfurt and Tokyo. As an investment bank with Chinese roots and an international reach, we are committed to providing first-rate financial services to both our Chinese and global clients to help them achieve their goals.

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