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KUALA LUMPUR: CIMB Treasury and Markets Research anticipates the rollout of fuel subsidy rationalisation to commence in mid-June 2024 at the earliest. This projection aligns with the government’s recent indication that the rationalisation will begin with diesel, it said in a note today. “The implementation date was not stated, though we understand that registrations for the diesel fleet card system are due to be in the next month, putting June as the earliest start date. “Considering the application process for the fleet card, we expect the rollout to take place in mid-June at the earliest,” it said. Prime Minister Datuk Seri Anwar Ibrahim, in a national address last night, announced the Cabinet’s decision to initiate fuel subsidy rationalisation, starting with diesel. However, specific timelines have not been disclosed, pending announcements from the relevant ministries. To recap, Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali stated in February plans to implement targeted diesel subsidies by June 2024. The expected savings from diesel subsidies are estimated at RM4 billion, equivalent to 0.2 per cent of gross domestic product (GDP) per annum. CIMB outlined the two application levels under the subsidised diesel control system (SKDS) 2.0. These include an application to KPDN for authorisation, with approvals taking up to two days, and an application to oil companies for fleet card issuance, estimated to require up to four weeks. The SKDS 2.0 application process for companies operating nine types of goods transport vehicles commenced on March 7 and has since expanded to an additional 14 types of commercial vehicles as of May 13. “At this stage, it remains unclear whether eligible individuals owning diesel-powered vehicles will need to apply for cash aids, or if the government will utilise information from the PADU database,” the note added. The National Utility Database, or PADU, serves as a computerised repository for storing and managing information on utilities and related details. – BERNAMA

KUALA LUMPUR: An increasing number of Malaysian smokers are switching to vaping to quit smoking tobacco products, a recent carried out by the Global Adult Tobacco Survey (GATS) shows. In welcoming the findings of the survey, the Advanced Centre for Addiction Treatment Advocacy (ACATA) noted that it also revealed a significant reduction in tobacco use among Malaysians while the incidence of vape use increased. According to the report, tobacco use among Malaysians decreased from 23 per cent in 2011 to 19 per cent in 2023, while vape use increased from 0.8 per cent to 5.8 per cent over the same period. These figures highlight the smokers’ preference for a harm-reduction approach despite the lack of comprehensive regulations that facilitate tobacco harm reduction. ACATA president Dr Arifin Fii said this is the first time that Malaysia achieved a significant reduction in smoking prevalence. He said that based on National Health and Morbidity Surveys (NHMS), Malaysian adult smoking prevalence has plateaued over the past three decades, with 24.8 per cent in 1996, 21.5 per cent in 2006, 23.1 per cent in 2011, 22.8 per cent in 2015 and 21.3 per cent in 2019. “GATS showed that the accelerated reduction in smoking prevalence coincides with the rapid rise in nicotine vape use,” he said in a statement. Since there have been no major policy and regulatory changes in tobacco control in the last decade, this rapid decline in smoking prevalence strongly suggests that more smokers are moving away from tobacco and substituting it with the much less harmful vape. More importantly, this reaffirms that vaping is an effective tool for quitting smoking, which is an important step towards reducing the health risks associated with smoking. A similar trend in the decline in smoking prevalence is also seen in countries like the United Kingdom (UK), where its smoking prevalence has been significantly reduced through the use of vape. According to data from the UK’s tobacco control body, Action on Smoking and Health (ASH), the overall rate of smoking in adults in England in 2022 was 12.7 per cent, down from 13 per cent in 2021. Meanwhile, the proportion of the population using vapes stood at 9.1 per cent, compared to 7.1 per cent in 2021. Results from GATS also indicated that despite an increase in healthcare providers giving quit-smoking advice, attempts to quit tobacco have remained stagnant. Instead, the use of nicotine vaping (14 per cent) became a more popular choice for quitting smoking than medication (10 per cent) or counselling (8 per cent). This implies that the current tobacco control measures are insufficient and ineffective. A more bold and innovative measure, such as a tobacco harm reduction approach using tools like vape, is a very sensible way forward in tobacco control that will rapidly reduce the prevalence of smoking in Malaysia. ACATA advocates for more pragmatic policies that support and facilitate smokers to quit smoking by empowering them with knowledge, facts, and awareness to make informed decisions rather than imposing very restrictive and prohibitive measures. Recent proposed measures for nicotine vaping products indicated by the Ministry of Health, such as a display ban, restricting flavours and standardised packaging guidelines, will be counterproductive and will deter smokers from switching from deadly smoking to much less harmful nicotine vaping. “Smokers need education and support, not restrictive regulations,” Dr Arifin added. “By embedding harm reduction strategies into quit-smoking programmes, we can provide smokers with the tools they need to succeed in their efforts to quit,” he said.

KUALA LUMPUR: Kinergy Advancement Bhd (KAB) posted a revenue of RM42.04 million for the first quarter (Q1) ended March 31, 2024 (FY2) compared to RM42.76 million posted in the same quarter last year. The sustainable energy and engineering solutions provider continues demonstrating strong quarterly financial growth. The company’s net profit for the quarter increased by 98.6 per cent to RM5.12 million in Q1 FY24 compared to RM2.58 million in the same quarter a year ago. This growth underscores the effectiveness of KAB’s strategic focus on its sustainable energy segment (SES), which continues to drive the company’s financial and operational momentum. With strong growth in Q1 FY24, KAB has catalysed a series of consecutive wins and sustained a trajectory of unstoppable growth, demonstrating its capabilities and competencies in leading the charge in sustainable energy solutions. The SES segment, in particular, has shown exceptional performance, generating a revenue of RM19.86 million, more than tripled over the past year. This significant increase can be attributed to the contributions from new projects and acquisitions. The SES segment generated an operating profit of RM5.94 million, significantly higher than RM2.68 million last year. This highlights the strong profitability and bright future of KAB’s skills in creating renewable and sustainable energy projects. Executive deputy chairman and group managing director Datuk Lai Keng Onn said KAB’s consistent progress in embracing its promising business transformation as the first-quarter result for the year is released. “Our alignment with strategic directions and seamless integration of our unique energy solutions ecosystem into our business model has been particularly notable. “The SES segment leads in significant revenue contribution, showcasing the segment’s potential to support national decarbonisation efforts and enterprises’ benefit from sustainable energy conservation alternatives,” he said in a statement. He added that the SES business has significantly contributed to the new record high in earnings, reflecting the company’s upward trajectory since expanding into the SES business segment. Looking ahead, KAB remains cautiously optimistic about its future prospects, which are predominantly driven by the SES business segment. KAB highlighted the success of its profitable projects and new ventures in this sector, showing strong earnings growth in the SES segment in Q1 FY24, driven by the development of a sustainable energy ecosystem. “Our strategic focus on the energy segment with clean energy (CE), renewable energy (RE) and energy efficient (EE) solutions continues to align with expanding recognition of our technical capabilities. This prominent recognition fuels our optimism for a positive outlook in FY24. “We are strategically positioned to meet and exceed our clients’ evolving energy needs. Our innovative solutions stand out, offering significant growth potential and the capability to help clients transition their operational processes with sustainable and innovative energy solutions,” Lai said. KAB continues expanding its SES offerings, focusing on CE, RE and EE, including Southeast Asia’s solar, biogas, and hydroelectric power projects.