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PETALING JAYA: Genting Group has been accused of dumping nearly a billion dollars of debt on a small island-resort and casino in the Bahamas, some 50 miles from South Florida. Calling it “a massive and coordinated fraud”, the Capo family of Miami is suing Genting Americas Inc for at least RM2.6bil (US$600mil), based on a court filing sighted by StarBiz. Incorporated in Delaware in the United States, Genting Americas currently controls the Genting Group’s entire operations and properties in Miami, New York and the Bahamas. Genting Americas is an affiliate company of BB Entertainment Ltd, which in turn is a joint-venture that is 78% owned by BB Investment Holdings Ltd and 22% owned by RAV Bahamas Ltd. BB Investment is 100% owned by Genting Malaysia Bhd. RAV, on the other hand, is fully controlled by the Capo family. BB Entertainment runs Resorts World Bimini in the Bahamas. It is a 10,000 sq ft casino, a 305-room hotel with surrounding restaurants, lounges and a jetty used to dock cruise ships. RAV had on Oct 7 filed a lawsuit against Genting Americas before the US District Court Southern District of Florida, seeking damages in excess of US$600mil. In a filing with Bursa Malaysia, Genting Malaysia has labelled the lawsuit as “baseless and totally without merit”. “(Genting Malaysia) will vigorously defend against the complaint.” In the court filing, RAV said it has transferred to BB Entertainment approximately 20 acres of land, which is where Resorts World Bimini now sits. The first batch of four acres of land transferred in 2013 was valued at US$12mil, while another 16 acres transferred a year later was valued at US$25.5mil. To date, RAV said that BB Entertainment has not distributed any profits from this venture because Genting Americas, which controls BB Entertainment’s finances, “has used BB Entertainment as its financial wasteland”. “Through its stranglehold over BB Entertainment and its finances, Genting Americas has used BB Entertainment to conceal a medley of fraudulent activities. “What is clear is that Genting Americas’ fraudulent accounting practices have drowned BB Entertainment in hundreds of millions of dollars in illegitimate debt.” BB Entertainment’s audited financial reports for 2022 reflect total liabilities of US$885.18mil. RAV noted that 99.4% of BB Entertainment’s total liabilities in 2022 constituted monies owed to Genting Malaysia’s subsidiaries. “Only a massive and coordinated fraud could dump nearly a billion dollars of debt on a small island resort, where RAV had already developed most of the significant infrastructure. “Genting Americas buried the nearly billion-dollar liabilities in consolidated statements using vague categories of expenses to conceal the fraud from RAV. “Genting Americas, at every turn, has deliberately kneecapped RAV’s efforts to obtain clarity into the financials, including denying RAV full access to BBE’s financial records, and denying its requests for an independent audit. “This lawsuit seeks the damages that Genting Americas’ continuing fraud has caused, which include, but are certainly not limited to, rendering RAV’s contribution to BB Entertainment (the 20 acres of land) entirely worthless,” according to RAV. RAV further alleges that only an outright fraud can explain how a small island-resort that averaged US$22mil in revenue per year for 10 years, can accumulate almost a billion dollars of debt in that same span. “No commercially reasonable actor would incur US$89mil of costs and interest per year to operate a small hotel that generates US$22mil in revenue per year,” it added. TA Research senior analyst Tan Kam Meng agrees that the accusations are baseless, on the basis that Genting Malaysia’s accounts are audited by PwC Malaysia. “I will give the benefit of the doubt to Genting Malaysia at this juncture. If there is fraud, the auditors would not certify the accounts. “Genting Malaysia also thinks that it has a strong case looking at its filing in Bursa Malaysia. Hence, I would not change my earnings projections at this moment,” he said. With regards to the lawsuit amount of US$600mil, Tan said Genting Group had the financial muscle to settle the amount, should the charge materialise. “They will probably be able to find a way to settle US$600mil,” he said. It is noteworthy that Genting Malaysia’s cash and cash equivalents stood at RM5.4bil as at the six months ended June 30, 2024. The company also had RM30.9bil worth of assets as at June 30, 2024. On the other hand, Genting Bhd’s cash and cash equivalents registered at RM25.6bil for the six months ended June 30, 2024, while its total assets were at RM109.9bil. In the meantime, Tan said Genting Malaysia’s prospects remained strong on the back of an influx of foreign tourists in Malaysia. Meanwhile, Rakuten Trade head of equity sales Vincent Lau said the court case is expected to drag on for some time which is typical of most such lawsuits. “As such, there is no immediate impact on the share price of Genting Malaysia and Genting Bhd. “Some investors may probably choose to sell their holdings and ask questions later, but overall it is not likely that there will be any major reaction in the share prices. “This is just a part and parcel of doing business and business operations are still fundamentally sound,” he said.–THE STAR

KUALA LUMPUR: DAMAC Group, a global leader in real estate development, data centers and other sectors, has announced its second significant investment in Thailand’s digital infrastructure. Under the brand EDGNEX Data Center by DAMAC, the Group plans to invest over RM4.28 billion (1 billion USD) in a series of data center projects to meet the rising demands of advanced AI technology and data processing capabilities. DAMAC announced a joint venture with PROEN Corp Public Company Limited, a prominent listed player in the Thailand technology landscape. This strategic investment marks a major expansion of EDGNEX’s footprint in Thailand and aligns with its commitment to supporting digital transformation in the Southeast Asia (SEA) region. EDGNEX will have a 70% stake in the joint venture and be responsible for data center operations. A press conference to commemorate the partnership, was honoured by the presence of H.E. Prasert Chantararuangthong, Deputy Prime Minister and Minister of Digital Economy and Society, who delivered a congratulatory speech and shared the government’s vision for investment in the digital business sector in Thailand. “I am honoured to be part of this event to congratulate the joint venture between these two corporations. It is a remarkable opportunity to meet key figures in the technology and digital industry, who play vital roles in driving Thailand forward into the digital era. The Thai government recognises the importance of establishing a strong foundation for the digital infrastructure. “This investment will significantly enhance Thailand’s data processing capabilities, aligning with the growing trends in the digital industry and attracting investors from around the world. Furthermore, it will create valuable opportunities for Thai professionals seeking to advance in the digital business sector,” said H.E. Prasert Chantararuangthong. “We are excited to expand our investment further into SEA and specifically into Thailand, a country that has shown immense potential for growth in digital innovation and smart technologies,” said Hussain Sajwani, Founder of DAMAC Group. “We aim to support Thailand’s growing digital economy and provide the necessary infrastructure for the next generation of AI-driven businesses. With this announcement, we substantially commit to the Thailand market, outlining a pipeline of approximately 100 MW of future data center capacity.” Kittipan Sri-bua-iam, CEO of PROEN Corp Public Company Limited, said: “We are very excited about this partnership with DAMAC Group which is increasingly becoming key player in the data center business with a solid footprint across SEA. This announcement underscores the importance of investments like DAMAC’s to meet the increasing demand for digital infrastructure in Thailand and we look forward to bringing excellence and innovation to the market.” The joint venture will include a state-of-the-art data center project with a total potential capacity of 20 MW. The first phase, comprising 5 MW of capacity, is already scheduled to be operational in early 2025. This data center will be a carrier-neutral facility with Tier III uptime certification, providing world-class reliability and resilience for its clients. The joint venture is targeted to finalize and commence its business by this year. An exclusive press conference was held to celebrate this milestone, featuring DAMAC Group and PROEN Corp senior executives. The Asia-Pacific data center market is also projected to experience significant growth. The market size is estimated at 14.27 thousand MW in 2024 and is expected to reach 23.2 thousand MW by 2029, growing at a CAGR of 10.21%.

KUALA LUMPUR:UOB Malaysia today announced the launch of its Sustainable Vendor Financing Programme (SVFP) to support Malaysia’s Oil & Gas Services and Equipment (OGSE) sector in its decarbonisation and energy transition efforts. As part of the programme’s debut, the Bank is allocating up to RM1 billion for financing1 OGSE suppliers participating in PETRONAS Suppliers Support Programme (PSSP).   The SVFP comprises transition financing solutions with competitive rates tailored for OGSE companies participating in PSSP. It also includes meaningful incentives for these companies to kickstart their decarbonisation initiatives such as the adoption of renewable energy, improvement of energy efficiency, emission reduction measures and fleet electrification.  Ms Ng Wei Wei, Chief Executive Officer of UOB Malaysia, said, “The launch of the Sustainable Vendor Financing Programme reflects our commitment to helping Malaysia’s OGSE sector transition towards sustainability. As PETRONAS is our valued partner, we are pleased to extend our support to their suppliers, which are predominantly small-and-medium-sized enterprises, to help them embark on their decarbonisation journey. This will also help the country’s OGSE sector stay competitive in the global value chain, with heightened expectations on ESG-related regulations being implemented across the world.”  The SVFP also introduces measures for OGSE companies to track and demonstrate progress in their sustainable practices. This includes completing capacity-building modules, establishing baseline greenhouse gas (GHG) reporting and demonstrating annual GHG reductions.    Developing relationship with PETRONAS   In 2019, UOB Malaysia worked closely with PETRONAS on a Vendor Financing Programme that provided financial certainty to OGSE suppliers, enabling these suppliers to focus on delivering their projects on-time and on-target.  The relationship is further strengthened with the newly launched SVFP that comes under UOB’s Transition Finance Framework (TFF). Developed by the bank’s Sector Solutions Group, a dedicated team of sector and sustainable finance specialists, UOB’s TFF offers a suite of banking solutions to companies across hard-to-abate sectors working on reducing their carbon emissions or developing low-carbon projects, such as biofuel refineries and carbon capture & storage initiatives.   UOB’s TFF has received a second-party opinion that verifies the framework is in line with internationally recognised climate finance principles, providing assurance of its alignment with global best practices for financing hard-to-abate sectors. With this framework, companies in the energy sector can establish resilient supply chains while meeting governance requirements.   

KUALA LUMPUR: Swisslog is pleased to announce the appointment of Steven Xie as the new Head of South East Asia, effective August 2024. In this role, Steven oversees all aspects of Swisslog’s business in the region, focusing on identifying new growth opportunities and developing strategies to meet the evolving demands of the logistics industry. With over 30 years of experience in Asia’s industrial sector, Steven brings a wealth of expertise in equipment and automation, making him the ideal leader to propel Swisslog to new heights in the fast-growing South East Asian market. Steven’s technical knowledge and in-depth understanding of the industry will ensure Swisslog stays at the forefront of innovation and customer satisfaction.   Steven was previously the CEO of Swisslog China from 2017 to 2021, and he achieved remarkable success by significantly increasing Swisslog’s local market share and establishing the company as one of the largest AutoStore integrators in the country. Under his leadership, Swisslog established the Swisslog China Technology Center in Guangdong province and launched its first localized product.   Commenting on Steven’s appointment, Swisslog CEO Jens Schmale stated: “Steven was a natural choice for this role with many of our long-serving colleagues fondly endorsing his return. Apart having strong leadership and team-building skills, his proven track record of driving business growth, managing key accounts, and leading system sales will allow Swisslog to support the exponential growth and transformation underway in the South East Asia region.” Energized on taking on his new role, Steven shared: “South East Asia is a crucial market for Swisslog, particularly with the rapid expansion of the warehouse automation sector. Rising labor costs, sustainability concerns, and the need for greater efficiency are driving unprecedented demand. I am excited about this new journey as I collaborate with familiar and new colleagues to reinforce Swisslog’s position as a leading provider of innovative warehouse automation solutions in this dynamic market.

GEORGE TOWN: Some 50 small and medium enterprises (SMEs) from China are seeking opportunities to expand their businesses in Penang following the influx of over RM400mil into the state. Malaysia Extra Low Voltage Association (Melvian) assistant secretary Cheah Chaw Son said that the Chinese companies want to explore opportunities in home furnishings, bio pharmaceuticals, technologies, advertising services, and eCommerces with local partners. Melvian is an industry body that comprises companies providing ICT, audio and visual, security, and data network infrastructure solutions. The SMEs from China are set to take part in a business matching session on Oct 22 at G Hotel to find suitable local business partners, that is being organised by Melvian “In the first half of 2024, Penang attracted RM411.8mil in investment from China. For the past decade, Penang roped in RM13.2bil investments from China that formed 6.8% of Penang’s total foreign investments, with a 50.5% compounded annual growth rate. “The influx of these funds into Penang attracted the companies’ attention. The Silicon Island development and the upcoming light rail transit project connecting Komtar and Bayan Lepas on the island also enhanced the state’s competitive edge as a pivotal investment hub,” he added. Cheah is confident that Malaysia’s projected gross domestic product (GDP) growth for 2024 and 2025 will continue spur investors’ interest in the state due to the country’s robust economic health. “The Socio-Economic Research Centre has projected that Malaysia would close the year with 5.4% GDP growth, sustaining at healthy clip of 5% in 2025,” Cheah said. The companies would take part in a business matching session on Oct 22 at G Hotel to find suitable local business partners. Tan Sri Tengku Razaleigh Hamzah will officiate the event jointly organised by Melvian, Small and Medium Enterprises Association, Meta Ex, and Honor Innovation Sdn Bhd. “The event is also to commemorate 50 years of Malaysia-China Diplomatic Relations,” he said.–THE STAR

SINGAPORE: Kronos Research, a leading quant-trading firm and market maker, has strengthened its leadership team with the appointment of Vincent Wang as Chief Technology Officer (CTO), a pivotal role focused on enhancing the firm’s commitment to innovation through collaboration and technical excellence. With over 20 years of technology leadership experience, Vincent has a proven track record of driving transformative success in the finance and technology sectors through key roles at Tower Research, Optiver, and ProTrak. Before joining Kronos, Vincent served as Co-head of China at Tower Research, where he played a crucial role in shaping the firm’s strategic vision and leading innovative IT initiatives that significantly enhanced trading returns while reducing operational costs. His tenure was marked by successful projects that dramatically improved latency and efficiency in complex trading systems. Prior to this, before being promoted to Technical Director at Optiver China, Vincent held the role of IT manager at Optiver Taiwan and IT Infrastructure Manager at ProTrak in the U.S. Vincent demonstrated a strong ability to align IT initiatives with strategic business objectives, developing and maintaining trading environments that ensured compliance and optimised performance. Vincent’s appointment signifies a major advancement for Kronos as it seeks to cultivate a dynamic culture of technical excellence. In his new role, he is committed to building a cohesive, cross-collaborative team dedicated to executing projects efficiently across various domains. He will spearhead the design and architecture of major software systems while mentoring team members on best practices in design and coding. Leveraging his technical expertise, Vincent is poised to enhance operational efficiency and optimise trading performance by implementing effective trading strategies. Ultimately, his efforts aim to foster a culture of creativity and innovation, contributing to our goal of becoming a leading trading firm in a competitive landscape. Hank Huang, Chief Executive Officer of Kronos, expressed enthusiasm about the new addition: “As an engineering and technology-driven quantitative trading firm, we are excited to welcome Vincent. His leadership will drive greater success in our major projects and enhance trading performance.” Vincent holds a Master’s degree in Information Science and Telecommunications from the University of Pittsburgh and a Bachelor’s degree in Management Information Science from National Central University in Taiwan.

PETALING JAYA: Loob Holding Sdn Bhd is collaborating with leading Dubai-based conglomerate Eureka Restaurant & Café to bring Tealive, the top Southeast Asian lifestyle tea brand, into the United Arab Emirates (UAE). This marks its first foray into the lucrative Middle East market after having entered Africa and North America in the past two years. Loob Holding founder and CEO Bryan Loo signed the Master Franchise Agreement in Dubai earlier this week with Eureka Restaurant & Café, represented by group founder, Abdulwahab Ilyas Galadari who is also a board member of the Ilyas & Mustafa Galadari (IMG) Group. Both IMG Group and Eureka Restaurant & Cafe are diversified family-led conglomerates rooted in the broader Galadari family legacy, venturing into theme parks, Food & Beverage, technology, trading, commodities and investments. With over 1,000 outlets in Southeast Asia, Mauritius, and Canada, the brand now looks to cater to the growing thirst for bubble tea and lifestyle beverages in the Middle East, starting with the UAE’s vibrant and diverse market. “The UAE is an exciting market with a dynamic food and beverage landscape, and we are thrilled to introduce Tealive to this region,” Loo said. “Partnering with Eureka is key to bringing our Tealive experience to the UAE, blending our innovative offerings with the local culture. We are confident this partnership will be the stepping stone to a successful Middle Eastern expansion.” Galadari shared similar enthusiasm: “We are delighted to collaborate with Tealive to bring this globally popular brand to the UAE, which has a population of over 10.2 mil. Tealive’s unique tea offerings align perfectly with the UAE’s cosmopolitan lifestyle and diverse tastes. We see tremendous potential for growth, and together, we aim to establish Tealive as the go-to bubble tea brand in the region.” The first phase of the expansion will focus on key cities, with the first flagship store scheduled to open in Dubai in early 2025 followed by four more within the first year of operations across major cities in UAE. “Our partner Eureka Restaurant & Café is one of the leading players in the food and beverage space. We will leverage on their local expertise and network to develop the market further,” Loo said. He added Tealive would continue its current regional strategy of starting small and scaling up fast with the right market conditions. “In Eureka Restaurant & Café, we have a partner with the local knowledge and local expertise with immense international exposure and experience. Together, we are poised to rapidly expand and promote our unique lifestyle tea culture throughout UAE,” he said. “Our partner is also involved in the largest theme park in UAE with about 20,000 visitors daily. Of course, we’ll have our Tealive store there too,” Loo quipped.

PETALING JAYA: Sapura Resources Bhd has redesignated its non-independent non-executive director Reza Abdul Rahim as its executive director and acting managing director (MD), effective today. Sapura stated that the new appointment follows the issuance of show-cause letters to managing director Shahriman Shamsuddin, who remains “on leave of absence”. In a filing with Bursa Malaysia today, the company said Reza would temporarily assume the duties, functions, powers and authorities of the MD.With this appointment, the chief corporate officer Mai Eliza Mior Zubir shall cease to be the officer-in-charge of the company effective Oct 10, it said. It added that further announcements will be made in the event of material developments on the matter.–FREE MALAYSIA TODAY

SINGAPORE: Most Asean equity fund managers are cautious about putting money in new economy companies that have sprouted in South-East Asia from changing consumer behaviour as a result of digitalisation. Portfolios today are still dominated by well-established, money-making old economy stocks of banks, industrial conglomerates and telecommunications providers instead of younger companies in e-Commerce, digital entertainment and online ride-hailing. A few fund managers have capitalised on early investments in such stocks like Sea, Grab and GoTo Gojek Tokopedia, but most have opted for a more conservative approach, avoiding these high-risk sectors altogether, said analyst Hunter Beaudoin at Morningstar Manager Research Services Asia. These nascent firms offer much higher growth prospects and access to innovative technologies than their traditional rivals in the region, but their risks cannot be overlooked, the analyst said. “Most of them are not yet profitable, or are companies that have just turned profitable. “These types of companies’ future shareholder returns can be uncertain as the long-term viability of their business models remains unproven,” Beaudoin said. In the second quarter ended June 30, GoTo, Indonesia’s biggest tech company, remained in the red with an underlying loss of 70 billion rupiah. Etta Putra, a Maybank analyst, said operating loss caused by high discounts and marketing expenses is a structural risk for GoTo. Singapore-based Grab has also continued to bleed with a loss of US$53mil in the quarter ended June 30. Sea, another Singapore-headquartered firm, which owns e-Commerce platform Shopee, beat its rivals to profitability after posting a net income of US$163mil in 2023, from a loss of US$1.66bil in 2022. For the three months ended June 30, Sea reported a net income of US$79.9mil, but it said it “wasn’t all smooth sailing” as that was 75.9% down from the US$331mil generated in the second quarter of 2023. Financial house PhillipCapital warned that Sea’s short-term growth remains challenged by keen rivalry, which means high costs will persist to maintain sales and market share. The difficulty in valuing these companies, due to a limited or lack of track record for growth projections, is also keeping interest at bay. They are often valued based on sales, earnings before interest, tax, depreciation and amortisation, or operating metrics such as gross merchandise value for e-Commerce companies. These do not necessarily translate to profits for shareholders and can incorporate high expectations, which make overvaluations more likely, Beaudoin said. The industries they serve are also competitive and susceptible to fluctuations in the economy, which could result in wide price swings. Such volatility was seen in Sea’s stock price, which soared over 2,000% from its initial public offering (IPO) at US$15 in October 2017 to an all-time high of about US$367 in October 2021. Sea saw an intense rally in its stock price at the start of the Covid-19 pandemic, which pushed it to overtake banking giant DBS Bank as the largest listed Asean company from May 2020 to the end of February 2022. The gains were fuelled by a combination of low interest rates and pandemic-induced demand for its three main business units: mobile gaming through subsidiary Garena, e-Commerce on Shopee and digital financial services via SeaMoney. On Tuesday, Sea was trading at around US$95 on the New York Stock Exchange. — The Straits Times/ANN