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Vivek Sood
Energy & Technology, News

Axiata, India’s Bharti Airtel to Merge Operations in Sri Lanka

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KUALA LUMPUR: Axiata Group Bhd and India-based Bharti Airtel Ltd signed a definitive agreement to merge their operations in Sri Lanka. According to a joint statement, Axiata’s subsidiary, Dialog Axiata, will acquire 100 per cent ownership of Airtel Lanka through a share swap arrangement. Bharti Airtel will receive approximately 10.35 per cent of Dialog Axiata shares as part of the deal. While the Telecommunications Regulatory Commission of Sri Lanka has granted approval for the merger, the transaction is subject to additional regulatory approvals. The merger coincides with Axiata’s strategic move to divest some of its operations in frontier markets to improve its profit margins and reinforce its financial position. Axiata is currently divesting its tower business in Myanmar for US$150 million (RM716.78 million) and withdrawing from the country due to deteriorating macroeconomic conditions and business challenges. Additionally, in December of last year, Axiata sold its operations in Nepal at a loss after encountering prolonged regulatory hurdles and uncertainties over seven years. The integration aims to capitalise on economies of scale and streamline infrastructure, resulting in technological and capital expenditure synergies. According to the statement, this will enhance broadband connectivity, voice services, and value-added offerings while also yielding cost reductions and operational efficiencies. Axiata group chief executive officer Vivek Sood stated that Dialog’s and Airtel Lanka’s merger aligns with Axiata’s strategy of consolidating markets and building resilience. Sood highlighted that the merger will generate value for Dialog and Axiata shareholders through attainable synergies. Bharti Airtel Lanka (Pvt) Ltd chief executive officer Ashish Chandra emphasised that the merger in Sri Lanka presents new prospects for innovation and growth, which will ultimately benefit consumers.

Telegram
Energy & Technology, News

Telegram Hits 1 Billion Users Within a Year

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MOSCOW: Pavel Durov, the billionaire founder of Telegram, expects the messaging app to surpass one billion monthly users within a year, likening its rapid growth to a “forest fire.” Durov, who resides in Dubai, launched Telegram after leaving Russia in 2014 following a dispute over government demands to censor content on his VK social media platform. In an interview with US journalist Tucker Carlson shared on the X social media platform, Durov revealed Telegram’s current user base of 900 million and predicted significant further expansion. Despite governmental pressures, Durov emphasized Telegram’s commitment to neutrality in geopolitics. Telegram’s primary competitor, WhatsApp, boasts over two billion monthly users. Reports suggest that Telegram may seek a US listing once it becomes profitable. Particularly influential in former Soviet republics, Telegram ranks among the major social media platforms globally. Since Russia invaded Ukraine in 2022, Telegram has become a key source of uncensored, albeit sometimes graphic and misleading, information about the conflict. Durov conceived the idea of an encrypted messaging app under Russian government scrutiny. He left Russia to ensure independence from governmental influence and dismissed rumours of Russian control over Telegram as baseless. Durov highlighted challenges to freedom of speech posed by major tech companies like Apple and Google, who can restrict access to apps through their stores. He chose the UAE for Telegram’s base due to its neutrality and openness to all nations. Telegram remains a platform open to all viewpoints, serving both opposition movements and governments without taking sides. Durov values personal freedom over material possessions, opting not to accumulate significant wealth beyond cryptocurrencies. –Reuters

Investment & Market Trends, News

Maxis Invests RM813 Mil To Enhance Network And IT Capabilities

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KUALA LUMPUR: Maxis Bhd has invested RM813 million in FY2023 to enhance its mobile network capacity, grow its fibre-to-premise footprint and improve digitalisation across the company. Its Chief Executive Officer Goh Seow Eng said that at the end of 2023, Maxis has more than 11,000 LTE sites in Malaysia, covering 95% of the population and connecting an additional 181,000 premises with its fibre infrastructure. “We continue to record a high touch point net promoter score of +68, thanks to the loyalty of our customers and their satisfaction with our products and services,” he said in the company’s annual report. According to Goh, Maxis has improved its Maxis and Hotlink apps to enable features such as plan upgrades, device purchases, roaming passes and credit top-ups to be completed with as few clicks as possible. It will also focus on digitalising customer interactions to ensure faster, more accessible and reliable service and is confident that Maxis will strengthen its position as Malaysia’s leading integrated telco. “Our long-term goal remains firmly set on sustainable and predictable business growth. “Despite the intensifying competition and ever-changing regulatory landscape, we are confident that our agility and fast response allow us to seize opportunities that may arise from these developments,” he added. Maxis’ net profit for the financial year ended 31 Dec 2023 (FY23) fell 16.8% to RM993 million from RM1.15 billion in FY22. However, its revenue increased to RM10.18 billion from RM9.79 billion a year ago, with the total revenue growing 4% while underlying service revenue, excluding low-margin wholesale voice service terminated in the fourth quarter of 2022 (4Q22) grew 4.2% year-on-year (YoY). Preparing For The Digital Future Moving forward, Maxis plans to further explore automation and AI capabilities for improved operational efficiency while maintaining its focus on the company’s strategic initiatives. The company also plans to incorporate sustainability elements into its supply chain in the long run. “Our long-term vision focuses on evolving into a cyber-resilient digital telecommunications company. We expect threats against mobile networks, systems and attempts to compromise data to grow more advanced and persistent. “At the same time, our interconnected supply chains create new risks. We pre-empt this through our investment into resources, capabilities, AI/ML (machine learning)-led capabilities, targeted automation and strong partnerships,” Goh added.

Google
News

Google Trims Workforce, Relocates Jobs Internationally in Cost-Cutting Push

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KUALA LUMPUR: Alphabet-owned Google spokesperson announced on Wednesday that the company is reducing its workforce. According to a news report, the number of employees affected by this decision has not been disclosed, and the specific teams involved have not been identified. The spokesperson clarified that the layoffs are not across the entire company and that those impacted can seek other positions within Google. A few of the affected roles will be relocated to key locations where the company focuses its investments, such as India, Chicago, Atlanta, and Dublin. The report further said that Google’s recent job reductions are part of a broader trend of layoffs within the tech and media sectors this year, intensifying concerns that job cuts may persist as businesses navigate economic challenges. A Google spokesperson explained, “In the latter half of 2023 and 2024, various teams have restructured to enhance efficiency, streamline operations, reduce hierarchical layers, and better allocate resources to key product areas.” According to a report by Business Insider on Wednesday, the layoffs have impacted multiple teams at Google, particularly within its real estate and finance departments. The finance areas affected include treasury, business services, and revenue cash operations. Business Insider also noted that Google’s finance head, Ruth Porat, emailed employees about organisational changes involving expanding operations to Bangalore, Mexico City, and Dublin. In January, Google dismissed hundreds of employees from various departments, including engineering, hardware, and assistant teams, as it escalated its focus on artificial intelligence development. Google chief executive officer Sundar Pichai has indicated to staff earlier this year that additional layoffs are to be expected.

News

Kedah Hopes To Build Underground Water Catchment Facility In Langkawi, Similar To Japan

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ALOR SETAR: The Kedah government will send a technical team to observe the underground water catchment facilities in Japan, following a proposal to build a similar facility in Langkawi. According to Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, the proposal to build a similar facility worth over RM300 million had been approved at the Kedah Water Resources Board (LSANK) level. “Many of the islands in Japan use such facilities. If we build a similar model in Langkawi, it will be the first in Malaysia,” he said. “The Japanese consultant who proposed it said it would be suitable to be built in Langkawi as there are stretches of rocks on the side and bottom with a river above, so we just need to dam it slightly to create an underground reservoir,” Sanusi told reporters today. Previously, the state government had proposed groundwater exploration as an alternative to address the problem of disruptions in clean water supply in the state. Last month, the state’s Public Works, Natural Resources, Water Supply and Environmental Committee Chairman Mohamad Yusoff @ Munir Zakaria was reported to have said that a government agency was carrying out a study and would implement the pilot project for an underground water catchment facility in Padang Mat Sirat, Langkawi. Dams Raising Concerns This was concerning an incident involving two damns hitting a warning level, despite being ‘still manageable’ as Yusoff had said. “The Muda Dam had hit danger level reserves with only 45.2%, but we don’t foresee any serious issues to continue supplying raw water to treatment plants because the Muda Dam is connected to the Pedu Dam. “Our concern is on the Bukit Malut Damn in Langkawi, which had also reached the danger level,” he said during a press conference at the state executive council meeting on 20 March. He also advised the public to use water sparingly as the design capacity of all 35 water treatment plants in the country is 1.45 billion litres a day, but instead, he said that the plants are now treating up to 1.6 billion litres of water daily. Currently, Kedah has six main dams that supply raw water to the domestic, industrial and agricultural sectors, namely the Pedu Dam, Muda Dam, Ahning Dam, Beris Dam, Bukit Malut Dam and Padang Saga Dam.

ALPHA IVF
Investment & Market Trends, News

Alpha IVF Group posts RM13.58mil in net profit for Q3

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KUALA LUMPUR: The Alpha IVF Group Bhd (AIG) posted a net profit of RM13.58 million for the third quarter (Q3) ended February 29, 2024 (FY24). Revenue stood at RM40.70 million for the quarter, attributed to the provision of assisted reproductive services, notably in-vitro fertilisation (IVF) treatments. There are no previous earnings comparisons, as the company was listed on the ACE market of Bursa Malaysia on 22 March 2024. In a filing with Bursa Malaysia, AIG did not provide any profit forecasts or guarantees for the current quarter. AIG plans to grow and improve its operations using its IVF expertise. The company plans to open more specialist centres in Malaysia, Indonesia, Cambodia, and Laos. Further, the company plans to upgrade and expand current centres, facilities, and offices and launch marketing campaigns to promote services and attract customers locally and internationally. In addition, AIG also plans to invest in research and development to stay ahead in assisted reproductive services and support business growth. In the filing, AIG expresses optimism about its future in the assisted reproductive services field and the broader healthcare industry.

Sime Darby Bhd growth
Investment & Market Trends, News

Sime Darby Heading Towards Strong Growth Trajectory

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PETALING JAYA: UOB Kay Hian Research (UOBKH Research) predicts that Sime Darby Bhd will achieve a compounded annual growth rate (CAGR) of 14.8% from the fiscal year ending June 30, 2023 (FY23) to FY26. The positive outlook is supported by Sime Darby’s recent strategic acquisitions, notably UMW Holdings Bhd, and anticipated recovery in the Chinese market. In its coverage initiation on Sime Darby, UOBKH Research recommends a “buy” rating with a target price of RM3.13, based on 12.2 times the estimated price-earnings ratio for FY25. According to UOBKH Research, Sime Darby stands to benefit significantly from its acquisition of UMW, particularly in the motor vehicles segment, by capitalizing on broader opportunities in customers’ car-replacement cycles. UOBKH Research highlighted that Sime Darby’s recent acquisitions, combined with the rebound in the Chinese market, support the projected three-year CAGR of 14.8% from FY23 to FY26. Following the acquisition of UMW, Sime Darby now commands a leading 58% market share in Malaysia’s automobile industry, up significantly from 5% in FY23, driven primarily by Perodua and Toyota brands. In China, where premium and luxury vehicles dominate, Sime Darby holds a modest 5% market share. The company’s revenue from Malaysia and China together contributes 66% of the motor-vehicle division’s revenue, while Australasia and other Southeast Asian countries contribute the remaining 34%. This diversified market presence provides a robust revenue base that helps mitigate risks associated with regional economic fluctuations, according to UOBKH Research. While Sime Darby’s motor-vehicles division experienced a slowdown in China, its largest revenue contributor, there is considerable growth potential in the luxury vehicle market. Despite challenges such as supply chain disruptions and price competition affecting margins, Sime Darby plans to expand its sales networks and introduce higher-margin products. In its industrial division, which accounts for 35% of Sime Darby’s total revenue, growth will continue to be driven by overseas markets, particularly Australasia, supported by a stable order book fueled by strong demand in the mining sector and steady commodity prices. Although commodity prices are projected to soften, UOBKH Research expects continued positive momentum in order book replenishment due to increased demand for metals driven by renewable energy trends and recovery in China’s construction industry. Sime Darby’s strategic focus on acquisitions and divestments aims to strengthen its vehicles and industrial businesses, achieving a more balanced revenue distribution across key markets including Malaysia, China, and Australasia. UOBKH Research also noted that divestment of non-core assets would further enhance the company’s financial position, with assets like Komatsu, Malaysia Vision Valley land, and UMW’s Serendah land potentially being put up for sale in the future.

News

Companies Offering Credit Services In Hot Water With New Law

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KUALA LUMPUR: Bank Negara Malaysia is in the process of drafting a Consumer Credit Act (CCA) that aims to impose tighter regulations on companies that provide ‘buy now, pay later’ (BNPL) services. To achieve this, the central bank will set up a special body in the initial stage to oversee entities that offer similar services. “The consumer credit oversight board task force (CCOB), led by the Ministry of Finance and two agencies, namely BNM and the Securities Commission, has been tasked with developing a comprehensive framework for this purpose,” said BNM Financial Inclusion Department Director Nor Rafidz Nazri. It is said that the task force will regulate the practices of those non-bank entities that offer credit services to consumers, while also regulating the providers of new credit products such as the BNPL service. Rafidz revealed that several other ministries are also involved in the law’s enactment, including the Ministry of Domestic Trade and Cost of Living, as well as the Ministry of Housing and Local Government. According to the CCOB, there are over 2.9 million people who use the BNPL service as of the third quarter of 2023. The top 3 main BNPL service providers are Atome, Shopee and Grab which recorded the highest number (97%) and value (96%) of transactions of the total recorded. “The use of BNPL saw double-digit growth in the third quarter of 2023, involving 52 million transactions worth RM4.3 billion,” it said. “The total outstanding balance of BNPL is relatively small, and most are paid on time with 96% of them having no outstanding payments. However, there are still about 1.3% delayed payments that were recorded within less than three months (of the transactions),” it said. Out of the 2.9 million active users of the BNPL services, a majority of 47% of users are aged between 31-45, while 44% are aged between 21 and 30.

Citi Bank
Investment & Market Trends, News

Citi Bank And Leading Banks Streamline Workforce For Enhanced Efficiency

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KUALA LUMPUR:  Citigroup’s headcount dropped by 2,000 employees following a comprehensive reorganization aimed at boosting profits and streamlining management layers. Similarly, Bank of America, Wells Fargo, and PNC Financial collectively trimmed more than 2,000 jobs in the three months ended March 31 compared to the previous quarter. This downsizing reflects banks’ efforts to manage costs amidst economic uncertainty, though expectations about future interest rate adjustments remain unsettled. Citigroup‘s recent layoffs are part of a broader initiative to cut 7,000 jobs, which will be reflected in upcoming quarterly earnings as employees complete their notice periods. The goal is to reduce Citi’s workforce by 20,000 over the next 2 years. Other banking executives acknowledged the challenges posed by changing interest rates, with higher funding costs and fluctuating trading results contributing to a cautious approach. Bank of America’s CEO noted a planned reduction in headcount, which has already decreased by over 4,700 since the first quarter of 2023. Meanwhile, investment banks like Goldman Sachs and Morgan Stanley saw declines in their workforce sizes, although they remain optimistic about increased revenue from capital markets activities like equity offerings and mergers. JPMorgan Chase, in contrast, expanded its workforce by nearly 2,000 employees in the first quarter, reaching a total of 311,921 employees, bucking the overall trend of workforce reductions across the industry.

Huawei
Energy & Technology, News

Huawei Malaysia Anticipates 5.5G Adoption Among Industries

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KUALA LUMPUR: Huawei Technologies (Malaysia) Sdn Bhd (Huawei Malaysia) is envisioning the transformative potential of its 5G- Advanced (5.5G) technology and its forthcoming implementation among major industries in Malaysia. Huawei Malaysia chief executive officer Simon Sun said the 5.5G technology is not targeted at individual consumers but provides greater connectivity capabilities that could benefit many crucial industries in the country such as the manufacturing sector. “The 5.5G technology, compared with 5G, is 10 times faster, supports 10 times more connections and has lower latency. We need to bring these cutting-edge digital facilities into the country, especially for the benefit of major industries to enhance operational efficiency as well as sustainability. “For example, previously in some factories, a lot of people or manpower were used to check quality. But now with 5.5G, high-definition artificial intelligence (Al) cameras can simultaneously analyse and give instructions to the production line. “It will be a game changer. Without this base foundation and good connectivity within the industries as an enabler, enhanced operational efficiency, which also leads to sustainability, will not happen,” he told Bernama. Sun elaborated that 5.5G unlocks numerous application possibilities, for example, its speed and low latency will deliver advanced, almost real-time capabilities for navigation systems in vehicles “With 5.5G, we have millimetre-wave radar technology that can help us detect objects when we navigate our vehicles in really bad weather conditions such as foggy days, low light conditions or under heavy smoke,” he said. Recently, Huawei Malaysia and Maxis Bhd inked a memorandum of understanding (MoU) to work on a 5G-Advanced (5.5G) acceleration programme. According to Sun, the collaboration with Maxis provides a commercial deliverable use case of the latest 5.5G technology advancements and not just a proof of concept from the lab. “What you see (in the collaboration) is what you will experience in the market,” he said. The collaboration would include several areas to drive commercialisation and adoption in Malaysia, spanning use cases, key technologies, technology evolution and the ecosystem. Both companies will explore initiatives to promote adoption and facilitate migration, showcasing the benefits of end-to-end 5.5G versatility, security and robustness via trial and testing and further accelerating the technology acceptance. Moving forward, Sun said Huawei Malaysia will continue to actively pursue its green energy strategy, focusing on solar inverters technology, data centres as well as technology and components for the electric vehicle industry. —BERNAMA

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